The Chamber of Deputies concluded this Wednesday (21) the appreciation of the Proposed Amendment to the Transitional Constitution. By 331 votes in favor and 163 against, parliamentarians approved the text in the second round. As it was modified by the deputies, the matter returns for analysis by the Senate and should be voted on today.
The proposal aims to guarantee resources for social programs in the 2023 Union Budget, such as the continuity of the payment of the Auxílio Brasil of R$ 600, which will once again be called Bolsa Família, and the real increase in the minimum wage from January.
The proposal establishes that the new government will have R$ 145 billion in addition to the ceiling, of which R$ 70 billion will be used to fund the social benefit of R$ 600 with an additional R$ 150 per child up to 6 years old.
The other BRL 75 billion can be allocated to expenses such as health policies (BRL 16.6 billion), including the Popular Pharmacy program and the real increase in the minimum wage (BRL 6.8 billion). The PEC also opens fiscal space for another R$ 23 billion in investments for a period of one year.
Modifications
The deputies approved two changes in the text of the PEC. The first change reduced the time for extending the spending cap to one year, different from the two-year period of the text approved in the Senate. Initially, the proposal negotiated by the elected government was valid for four years.
Another approved highlight changed the allocation of resources from the so-called secret budget, the rapporteur’s amendments, considered unconstitutional by the Federal Supreme Court (STF). An agreement between party leaders defined that the resources will be apportioned between individual amendments and non-mandatory execution schedules by the Executive. The Chamber will keep 77.5% of the overall value of the individual amendments; and the Senate, with 22.5%.
Golden Rule
The PEC dispenses with the “golden rule” regarding the need for the Executive Branch to request authorization from the National Congress to issue public debt securities to finance current expenditures in the amount of R$ 145 billion next year. Resources will still be left out of the primary result target.
Limitations on the spending ceiling on donations received by federal universities, resources for gas aid in 2023, transfer of resources from the states to the Union to carry out engineering works and services are also removed. Donations for socio-environmental projects related to climate change are outside the limitation.
