the institute unecs (National Union of Commerce and Services Entities) expressed this Monday (28.Nov.2022) concern with the approval of the PEC (Proposal for Amendment to the Constitution). The measure provides for an overflow in the 2023 Budget to keep the Brazil Aid at R$ 600.
In a text released to the press, the entity said it was in favor of maintaining the value of the benefit, but that the measure should take place “for changes in the Union Budget for 2023, instead of an authorization for extraordinary spending”🇧🇷 Read the full article at the end of the report.
According to Unecs, the high expenses presented in the text of the PEC could be responsible for a series of harmful consequences, such as an increase in public debt, changes in interest rates and inflation. For the agency, the effects would fall on the poorest population.
They also understand that the tax burden in Brazil is very high and “does not include a raise”🇧🇷
The solution offered by the institute is the carrying out of an administrative reform as an alternative to the hole in the ceiling. For the group, the future government and the National Congress must establish “priorities for serving the social area, within the budget, without the need to increase taxation or indebtedness”🇧🇷
After the administrative reform, they suggest a tax reform “that simplifies the system and corrects distortions”🇧🇷
PEC-DRILL CEILING
The President-elect Transition Team Proposal Luiz Inacio Lula da Silva (PT) provides for the maintenance of the Auxílio Brasil –which will probably be renamed Bolsa Família– at R$600 in its new mandate. It also proposes an additional amount of R$ 150 for families with children up to 6 years old.
For the aid to be maintained, it is necessary for the next government to leave up to R$ 198 billion outside the Budget.
The duration of the PEC is still uncertain. While Lula’s supporters defend that the budget gap has no limit, many congressmen are resistant to the permanence of the hole and defend the maintenance of the aid only until 2023.
busy with international commitments is throat surgery, Lula did not participate actively in the transitional government in the last two weeks. The management is under the command of the elected vice president Geraldo Alckmin (PSB), which presented the draft of the ceiling-breaking PEC to leaders of Congress🇧🇷
However, the PT arrived in Brasilia this Monday and its main mission is to unblock the progress of the proposal until Friday (Dec. 2, 2022), when it should leave the federal capital.
He is expected to meet with the president of the Senate, Rodrigo Pacheco (PSD-MG), and the Chamber, Arthur Lira (PP-AL), during your stay.
Here is the full text of Unecs:
“The Unecs Institute – National Union of Commerce and Services Entities, which brings together the largest organized and freely-adhering representatives of the sector, present throughout the national territory, expresses its support for the maintenance, next year, of the value of R$ 600 do Auxílio Brasil or whatever name it may have, as it is considered a necessity in the current situation of difficulties for a large part of the population.
“It considers, however, that the resources necessary to guarantee this amount should be sought through reallocations in the Union Budget for 2023, instead of an authorization for extraordinary expenditure, considering that the high amount of forecast revenues must include the inclusion of these expenditures, which should become permanent.
“Thus, Unecs expresses its concern regarding the approval of the Transition PEC, by including additional amounts that go beyond the Union budget, which would represent a significant increase in public debt with an impact on interest rates, inflation and economic activity especially affecting the poorest sections of the population.
“The Unecs Institute defends that Congress and the government adopt, as a priority, carrying out an administrative reform to rationalize public spending, establishing priorities for serving the social area, within the Budget, without the need to increase taxation, or the indebtedness.
“We understand that the tax burden in Brazil is already very high and does not support an increase, in addition to directly interfering with inflation and the citizen’s pocket, so it is necessary to carry out administrative reform first, and then carry out a tax reform, which simplifies the system and correct distortions, but without increasing total taxation.
“The Unecs Institute considers that fiscal austerity is not incompatible with social responsibility, but a necessary condition, although not sufficient, for the solution of serious social problems, which can only be solved with the growth of the economy, which depends on the balance of accounts public policies, legal certainty, simplified and moderate taxation and an efficient State.
“This document is signed by the presidents of the entities that make up the Unecs Institute: José César Costa, President of Unecs and of the CNDL – Confederation of Shopkeepers; Leonardo Miguel Severini, President of ABAD – Brazilian Association of Wholesalers and Distributors; João Carlos Galassi, President of ABRAS – Brazilian Association of Supermarkets; Paulo Solmucci, President of ABRASEL – Brazilian Association of Bars and Restaurants; Paulo Eduardo Guimarães, President of AFRAC – Brazilian Association of Automation for Commerce; Alfredo Cotait Neto, President of CACB – Confederation of Commercial and Business Associations of Brazil; Geraldo Defalco, President of ANAMACO – National Association of Construction Material Traders.”
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