The Senate CCJ approves the PEC Transition and expands the spending ceiling

The Constitution and Justice Commission (CCJ) of the Senate approved at the end of this Tuesday (6) “PEC transition“, a proposal that frees up space in the 2023 Budget for social programs and real increases in the minimum wage. THE PEC 32/2022 it continues with two rounds of plenary voting, where three-fifths of the senators’ votes (49 out of 81) are required.

The approved proposal does not remove Bolsa Familia (currently Auxílio Brasil) of the expenditure limit, but extends the limit of this limit by BRL 145 billion to guarantee the payment of the benefit. The deadline for raising the ceiling has been set by the rapporteur’s substitute, Alexandre Silveira (PSD-MG), two years, not four, as provided for in the original text.

The approval came after a deal proposed by Senator Oriovisto Guimarães (Podemos-PR) to reduce the expansion of the ceiling by $30 billion. Initially, the text provided for an increase of 175 billion dollars for social benefits. Despite the agreement, Oriovisto informed that he will present an amendment in the plenary session to try to reduce the period of validity of the rule from two years to one year and that he will try to further reduce the expansion of the ceiling.

the impact

With this measure, the elected government will be able to pay Bolsa Familia of R$ 600, plus R$ 150 for children up to 6 years old from January. The total expected fiscal impact of the proposal is 168 billion BRL, 145 billion BRL of which refers to Bolsa Família and about 23 billion BRL for investments, an amount linked to any excess revenue.

By increasing the fiscal space, the 2023 Budget opens up a gap for health, education and security, among others, and guaranteeing resources for programs such as Farmácia Popular and for the construction of popular houses.

Presented by Senator Marcelo Castro (MDB-PI), who is the general rapporteur for the 2023 Budget, with the support of the transition team of the elected government, the text includes excerpts from other CECs and parts of some of the proposed changes.

What happens now?

With the approval of the KLD, the text goes to the plenary senate, where it must be voted on Wednesday (7). The CEC needs at least 49 favorable votes, in two shifts. If this happens, the proposal goes to the Chamber of Deputies.

The PT team is running out of time as it wants to approve the proposal before the 2023 budget vote, scheduled for later this month. In the annual budget bill (PLOA), will detail the values ​​that each of the new government’s programs will have in the coming year, including Bolsa Família.

Alexandre Silveira said this Tuesday that he will remain the PEC’s rapporteur in the plenary session – and that there is “a big chance” that the text will be voted on this Wednesday.

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