Finance Ministry wants to limit government spending for up to 20 years.
The text of the proposed constitutional amendment (PEC) submitted by the Ministry of Finance to interim president Michel Temer foresees the establishment of a ceiling for public spending for 20 years; the limit on the growth of government spending may be altered from the tenth year of the new fiscal regime, but only by law approved by the National Congress.
Reuters - The text of the proposed amendment to the Constitution (PEC) submitted by the Ministry of Finance to interim president Michel Temer foresees the establishment of a ceiling for public spending for 20 years, according to a report in the newspaper O Estado de S. Paulo this Tuesday.
According to the Estadão newspaper, the proposal stipulates that the limit on government spending growth could be altered starting in the tenth year of the new fiscal regime, but only through a law approved by the National Congress; the use of provisional measures is prohibited.
The text also establishes, as a kind of penalty, a sequence of seven "restrictions" on new expenses in case the spending cap is breached, including a ban on salary adjustments for public servants. Expenses related to subsidies granted by the National Treasury cannot exceed the previous year's spending, and the granting of new tax incentives will be prohibited.