The President of the Chamber of Deputies, Arthur Lira (PP-AL), suspended the session on Tuesday (20.Dec.2022) that analyzed the PEC that allows the future government of Luiz Inacio Lula da Silva (PT) break the spending ceiling to fulfill campaign promises.
The Chamber approved the basic text by 331 votes in favor and 168 against at 10:58 pm. With the advanced hours and the low quorum, Lira decided to vote for the 2nd round on the morning of this Wednesday (21.Dec).
The deputies analyzed, however, 2 highlights – separately voted excerpts that can change the text. Only the suggestion of the PL was approved by the deputies. The highlight removes from the text the passage that authorized the transition team to indicate the allocation of R$ 145 billion outside the fiscal rule.
The ceiling-breaking PEC will make it possible to pay the Auxilio Brasil of BRL 600 – which may once again be called Bolsa Família – and BRL 150 for children up to 6 years of age in 2023. Breaking the cap will have a fiscal impact of over BRL 200 billion .
The rapporteur’s opinion Elmar Nascimento (União Brasil – BA), cut the term from 2 years to 1 year and excluded permission for the new government to borrow from international organizations to invest outside the ceiling. read the full of the report (149 KB).
Nascimento also added a device to raise the constitutional limit of individual tax-imposed amendments to the Budget to 2% of net current revenue – by the current estimate, R$ 21.3 billion.
The text proposes leaving 77.5% of the value under the responsibility of the Chamber (513 deputies) and 22.5% for the Senate (81 senators).
The individual division of tax amendments in 2023 looks like this:
- BRL 32.1 million for each deputy;
- R$ 59 million for each senator.
If the PEC is approved, the mechanism will be constitutionalized. In all, there will be R$ 21.3 billion for individual amendments in 2023 and, in absolute terms, senators will receive a larger share of the resources.
It is natural that in the Senate, the House that represents the States, the value of amendments is slightly higher than that granted to the Chamber. But most importantly: everyone, deputies and senators, won and profited from this arrangement. They start 2023 with much more guaranteed money than they had before Lula’s tabajara operation with the Supreme to eliminate the rapporteur’s amendments (RP9).
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