The president of the Chamber, Arthur Lira (PP-AL), relativized the importance of complying with fiscal rules when defending urgency in defining the government’s new social program. In recent days, pressure has increased for the extension of emergency aid to vulnerable people, contrary to the team of Economy Minister Paulo Guedes, who is trying to block any program outside the spending ceiling – the rule that limits the advance of expenses to inflation variation .
The Ministry of Economy has defended the approval of a new rule for the payment of precatório (judicial debts) to make room in the spending ceiling for the expansion of Bolsa Família, which will be renamed Auxílio Brasil. In practice, the PEC allows a portion of these debts to be paid outside the expense limit. There is still another requirement placed by the economic team: the approval of the Income Tax reform, since the taxation of profits and dividends would be the source of financing for the permanent increase in expenditure.
Since none of these proposals have yet been fully appreciated by Congress, members of the political wing have reinforced the pressure for some extension of current benefits – even if it means some spending outside the ceiling. As Guedes’ team tries to resist, Lira has questioned the political logic of it.
“How were we going to justify breaking the ceiling to pay court orders, and many court orders have already been sold, are in the hands of investment funds, and not breaching the ceiling for a (social) program or for assistance? How, politically, is this not approved?”, said the president of the Chamber in an interview with the magazine Look. For him, these programs “are not voters, they are urgent”. “We have more than 20 million Brazilians literally starving,” he said.
Still on the court orders, Lira said that the solution will not involve default or breaking the ceiling. He also said the proposal would leave financial problems for presidents who are elected in the future.
The president of the Chamber also stated that the definition of the new social program is not an electoral issue. He mentioned that former President Luiz Inácio Lula da Silva has already talked about breaking the roof, controlling fuel prices, monitoring the press and drawing up a broader social program to serve the needy population. “I don’t defend the government or the opposition, but the issue of poverty is broader than the election,” he said.
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