The proposal needs 27 signatures from senators to start working in the Upper House of Congress
The senator and rapporteur of the 2023 Budget, Marcelo Castro (MDB-PI), presented this Monday (28.Nov.2022) the PEC (proposed amendment to the Constitution) that allows the future government of Luiz Inacio Lula da Silva (PT) a license to spend BRL 198 billion outside the spending cap – the rule that limits spending growth to inflation.
read the full of the proposal (116 KB).
If the text is approved, the president-elect’s team will be able to maintain the payment of R$ 600 from Auxílio Brasil in 2023. The transition team’s calculations consider spending R$ 175 billion to fund the social program.
Read below the main points of the text of the PEC filed this Monday in the Senate:
- Auxílio Brasil (R$ 157 billion): full amount to cover the monthly R$ 600 for 21.5 million families;
- children up to 6 years old (R$ 18 billion): amount to pay R$ 150 to beneficiaries of the Auxílio Brasil with children up to 6 years old;
- investments (R$ 23 billion): the nature of the projects is not yet clear and it will be up to the Lula government to decide.
BRL 105 billion free to spend
This money was within the Budget and below the ceiling to cover the monthly Auxílio Brasil of R$ 405 in 2023. Now, everything that will be spent on the benefit will be outside the ceiling.
With the maneuver, Lula will have R$ 105 billion at his disposal to spend on whatever he wants in 2023. He can use these resources to give a real increase to the minimum wage, for example, or readjust the salaries of public servants.
Investments of BRL 23 billion
The text leaves around BRL 23 billion for investments outside the ceiling. Stay out too “expenses with socio-environmental projects or related to climate change” that they are “funded by donations”such as transfers from the Amazon Fund.
#Lula #license #spend #billion #cap