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July 1, 2022
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Senate approves PEC with package of aid to needy and truck drivers

Regulation of municipal associations is approved in the Chamber

The Senate approved today (30), in two rounds, the proposed amendment to the Constitution (PEC) 1, which brings a package of measures to reduce the impacts generated by the increase in fuel prices and increase the value of social benefits. After several arrangements and negotiations, a PEC with government proposals to compensate the states and the Federal District for the reduction of ICMS on diesel became a proposal to increase the value of Auxílio Brasil, an assistance program that replaced Bolsa Família, among others. measures.Senate approves PEC with package of aid to needy and truck drivers

From PEC 16, which ended up being joined to PEC 1, the only remaining point was compensation to states that reduce the ICMS rate on ethanol. The PEC approved today also brings the payment of the voucher truck driver, in the amount of R$ 1 thousand monthly for five months. Another proposal is the inclusion of over 1.6 million families in Auxílio Brasil, a program that replaced Bolsa Família. In addition to significantly increasing the number of beneficiaries of the social program, there is a forecast of an increase of R$ 200 in the value of the program until December of this year. Now, the PEC is going to be analyzed by the Chamber.

The approval of the PEC had the votes of some senators who spoke out against parts of the proposal, disagreed with part of the text, but voted in favor. The justification was that the most needy need help at this time of crisis in which the country lives.

To help with the approval of the PEC, the rapporteur, Fernando Bezerra (MDB-PE), removed a provision from the text that would give a kind of “blank check” for the government to spend on aid without being subject to the application of “any fence or restriction”. provided for in a rule of any nature”. Bezerra stated that the text does not go beyond legal limits, but acts as an emergency.

“The text collected the main concerns, so that we could respect the legal commandment of the country, but being able to act in an emergency, as required by the situation we are facing”.

Emergency state

The opposition strongly questioned the possibility foreseen in the PEC for the government to declare a State of Emergency. This provision was included in the proposal for the government not to run the risk of committing an electoral crime by transferring assistance benefits less than three months before the elections. The creation of this type of benefit is prohibited in an election year. The only exception is precisely during the duration of a State of Emergency.

According to Bezerra, however, the measures authorized by a possible decree of State of Emergency will only be those provided for in the PEC, without the possibility of new programs using the PEC to increase spending. “There is no doubt, therefore, that there will be no gap or space for new measures or expansion of spending on these same measures,” said Bezerra.

taxi drivers

Hours before the vote, the rapporteur included a section that also guarantees benefits for taxi drivers, another category, as well as truck drivers, directly affected by the high fuel prices. The aid will cost more than R$ 2 billion to the public coffers. App drivers and motorcycle taxi drivers are not included in the measure.

A budget supplement of R$500 million was also included in the Alimenta Brasil program, which was regulated in December last year. It is a food purchase program from family farmers, extractivists, artisanal fishermen, indigenous peoples and other traditional populations.

Bezerra also included a section that prohibits the government from publicizing the payment of these benefits. The move has pleased the opposition, as it hampers an attempt to politically capitalize on these benefits three months before elections.

Brazil aid

The PEC provides for the inclusion of over 1.6 million families awaiting registration in Auxílio Brasil, thus eliminating the program’s waiting list. In addition to increasing the number of beneficiaries of the social program, there is a forecast of an increase of R$ 200 in the value of the program until December this year.

With the increase, the additional cost will be around R$ 26 billion. The justification for the additional aid, according to Bezerra, is the exacerbation of the Brazilian inflationary scenario and double-digit inflation, which has consumed the income of the poorest.

Transport for the elderly

Regarding public passenger transport, the text that will be presented will compensate companies for the gratuity for the elderly in urban, metropolitan and semi-urban transport, including that existing within the same Integrated Development Region (Ride).

The Federal District, with its surroundings, has the largest in the country. For the measure, the cost will be R$ 2.5 billion. The intention is to relieve the system, which was also affected by the rise in the price of diesel.

Ethanol

The text also provides for a change in the form of reimbursement to states in the reduction of taxation on hydrated ethanol. According to Bezerra, to balance the final prices of gasoline and alcohol, influenced by the 17% ICMS tax collection ceiling, the government will need to transfer the amount of R$ 3.8 billion to the states. This money will be applied to tax credits.

The distribution criterion for this value is the level of ethanol consumption in each federative unit. São Paulo should keep around 55% of the resources, according to the parliamentarian. Before getting off the ground, however, it will be up to the governors to define specific legislation for the distribution of these credits.

With the exception of the inclusion of new families in Auxílio Brasil, all other measures will only be valid until December 31 of this year, including the R$ 200 increase in the program that replaced Bolsa Família.

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