This Wednesday (16), the government’s transition group, headed by vice president-elect Geraldo Alckmin (Brazilian Socialist Party), presented to Congress its Proposed Constitutional Amendment (PEC, in Portuguese). Among the text's main points is the removal of Family Grant (Bolsa Família, in Portuguese) amounts from the limits imposed by the spending ceiling.
“We handed in the PEC, a draft to be evaluated by senators and federal deputies”, Alckmin said. “The principle of this PEC is to assist children and families who are living in extreme poverty. The Annual Budget Law [LOA, in Portuguese] will decide what to do”, he added.
Since Rodrigo Pacheco (Social Democratic Party, Minas Gerais state), president of the Chamber of Deputies, is in Egypt attending COP27, the text was handed in to senator Davi Alcolumbre (Union Brazil, Amapá state) and the 2023 Budget rapporteur, senator Marcelo Castro (Brazilian Democratic Movement, Piauí state). Leaders of the Chamber of Deputies, such as its president, Arthur Lira (Progressist Party, Alagoas state), also attended the meeting.
Questions
It is still unknown, for instance, for how long the Brazil Grant will be detached from the spending ceiling. The newly elected government hopes it becomes definitive. However, there are sectors of the National Congress that advocate for the dissociation to last one or four years, at most.
“The proposal has no time limit. It has principles, such as the exclusion of the Family Grant [from the spending ceiling]. Deputies and senators are the ones who will decide on it”, said Alckmin.
Family Grant will return to its original name (Bolsa Família, in Portuguese) and characteristics, replacing Auxílio Brasil (Brazil Aid), the name given by Jair Bolsonaro (Liberal Party). Lula committed to pay 600 reais (about 110 US dollars) a month to the beneficiary families.
The dissociation between the cash transfer program and the spending ceiling limits will open up the federal budget to other areas. This is because 105 billion reais originally earmarked for Brazil Aid could be used in other sectors. Thus, there will be more funds available, for example, for health, culture, and minimum wage increases.
First, the proposal will be evaluated by the Senate before reaching the Chamber of Deputies. According to Marcelo Castro, senators will probably discuss — and approve — the PEC still in November. Then the deputies will discuss the topic.
“There isn’t a timetable. It must be decided as soon as possible. We have 40, 45 days to end the legislative year. The PEC and everything else are being done to strengthen the Legislative power. President Lula has said: to strengthen the [Family Grant] policy to solve problems. The Senate and the Chamber of Deputies are the ones to decide about it. The reception was very positive, [but] it does not mean that this proposal will be approved. “This is an important start”, Alckmin said.
Universities
PEC also focuses on the continued work of public universities. The text submitted on Wednesday specifies that donations raised by universities through “own efforts” may be used regardless of the spending ceiling.
The money collected through the universities’ efforts includes, for instance, donations by former students and agreements signed with foreign institutions. Due to the limits imposed by the spending ceiling, in some cases, this money was not used.
According to the PEC, donations made by other sectors, for instance, foreign money donated to be used directly in environmental issues, should also be excluded from the spending ceiling calculations.
Edited by: Flávia Chacon e Rodrigo Durão Coelho
