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November 2, 2021
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Chamber: PEC vote on precatório may take place next week

Chamber: PEC vote on precatório may take place next week

The proposed amendment to the Constitution (PEC) 23 of 2021, which deals with the payment of court orders, may be voted on next week. The text, which had the discussion closed last night (27), limits the amount of annual expenses with government debts with a definitive court decision, the precatório; changes the readjustment of debts and changes the way to calculate the spending ceiling.Chamber: PEC vote on precatório may take place next week

There was an expectation that the text could be voted on in the session this Thursday (28), but until the beginning of the afternoon, the quorum of the Chamber of Deputies totaled less than 400 congressmen. For a PEC to be approved, a minimum vote of 308 deputies is required.

According to the substitute text approved by the Special Committee, in addition to the payment of large amounts in installments, there will be a limit for payment. The text also says that the payment of large value orders will be paid in installments until 2029. For those of lesser value, up to 60 minimum wages, currently R$ 66,000, payment will be made in cash.

The limit of expenses with court orders will be valid until the end of the spending cap regime (2036) and for next year it will be the amount paid in 2016 (R$ 19.6 billion) applied to the accumulated IPCA for the period. The estimate is that the ceiling will be almost R$ 40 billion in 2022.

The proposal has generated controversy. The government defends the approval of the PEC with the argument that the measure will open fiscal space to make the payment of the Brazil Aid feasible.

“The PEC is fundamental for us to open fiscal space for the implementation of the new program aimed at helping the vulnerable population. We are talking about Auxílio Brasil, we are talking about millions of Brazilians who will continue to have the government’s support”, said the government leader, Deputy Ricardo Barros (PP-PR).

The opposition says that if the PEC is approved, the government will default on creditors. The deputies also point out that the proposal will harm education resources by altering the payment of Fundef’s debts.

“The government seeks to approve the default in this House. This is a liquid right being robbed”, criticized Deputy Erika Kokay (PT-DF).

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