by Marcela Ayres
BRASÍLIA (Reuters) – The uncertainty about the size of the hole to the spending ceiling in the design to put the government’s new cash transfer program upright was the factor that led to the retreat in the Brazil Aid announcement, originally scheduled for the end of the Friday afternoon, according to two sources at the Ministry of Economy with direct knowledge of the matter.
On condition of anonymity, one of the sources stated that the amount agreed between the political wing and the economic team was around 30 billion reais outside the ceiling, but that articulations were already being made in the afternoon so that the amount would be higher, thus accommodating space for the rapporteur’s amendments, especially coveted in an election year.
The amount allocated to these amendments, which are made by the parliamentarian chosen to report the Annual Budget Law (PLOA), gained importance in the preparation of the last budget pieces.
Information about these amendments is not transparent and observers have pointed out their use to favor the electoral bases of congressmen close to the president.
Amid pressure from the economic team so that the hole in the ceiling did not exceed 30 billion reais, the announcement of the program was suspended.
Leaving the Congress at the end of this afternoon, ministers Ciro Nogueira, from the Civil House, and João Roma, from Citizenship, said that it was not possible to finalize the text.
“We are still closing the text,” said Nogueira. Rome was on the same line: “That’s a lot of information. We thought about advertising, but it hasn’t validated yet.”
In order to make possible an income transfer program of 400 reais in 2022, as President Jair Bolsonaro wanted, the government came up with the solution of using the Bolsa Família budget plus temporary aid that, as it is not structured as a continuous expense, will not need of definition of source of revenue.
Bolsa Família will be renamed Auxílio Brasil, as the government planned, and will maintain its budget of 34.7 billion reais planned for next year. The idea is for the program to reach 17 million families, compared to 14 million currently.
But, to strengthen the amount paid to beneficiaries, a temporary aid will be created, at a cost of around 50 billion reais. Part of the aid will be paid within the spending ceiling and part outside. As it has a limited duration, this expense does not need compensation under the Fiscal Responsibility Law (LRF).
With this design, the government will no longer need the taxation of dividends, proposed in the reform of the Income Tax, to make possible a greater social benefit next year.
According to a third source, the processing of the reform of the Income Tax is considered practically discarded in the current scenario.
Within the Ministry of Economy, there is frustration with the fact that the reform of the Income Tax has not progressed, which would have made possible a structural change in Bolsa Família, as Minister Paulo Guedes had been defending. But for now, there is no indication that the minister or senior officials are leaving because of the setback in relation to the ceiling, said a source, pointing out that the focus now is on work to contain damage.
The new formatting of the aid represents a victory for the political wing in the face of efforts by Guedes’ team to limit the benefit to 300 reais in 2022 and place it entirely under the roof.
The news that the ceiling rule will be disrespected to make the program viable soured the mood of the markets this Tuesday: long interest rates rose, the stock market collapsed 3.28% and the dollar closed close to 5.60 reais.
See too
+ Until 2019, there were more people in prisons than on the Brazilian stock exchange
+ Aloe gel in the drink: see the benefits
+ Lemon-squeezing trick becomes a craze on social media
+ Chef playmate creates aphrodisiac recipe for Orgasm Day
+ Mercedes-Benz Sprinter wins motorhome version
+ Anorexia, an eating disorder that can lead to death
+ US agency warns: never wash raw chicken meat
+ Yasmin Brunet breaks the silence
+ Shark is captured in MA with the remains of youngsters missing in the stomach
+ See how much it costs to eat at the MasterChef judges’ restaurants
+ Auction of cars and motorcycles from Kombi to Nissan Frontier 0km
#Uncertainty #size #hole #ceiling #led #retreat #Auxílio #Brasil #sources #ISTOÉ #DINHEIRO