Finance Ministry tries to contain the bleeding caused by salary increase for civil servants.
Given the damage caused by the public sector salary increase approved by the Chamber of Deputies, the Ministry of Finance stated that the increase is contingent on the ceiling established by the Constitution; if the amendment limiting spending increases to the previous year's inflation is approved, this index will apply to all public sector employees, effectively eliminating any real gains; the economic team wanted to include this point from the beginning, but the initiative was reportedly blocked by the Minister of Finance, Henrique Meirelles, and by the interim president himself, Michel Temer, to avoid potential clashes with the sector.
247 - The Ministry of Finance has hardened its stance regarding salary increases for civil servants. According to the ministry headed by Henrique Meirelles, the increase for public employees is contingent on the ceiling established by the Constitution. In short: if the amendment limiting spending increases to the previous year's inflation rate is passed, this index will apply to all civil servants, which in practice eliminates any real gains.
From the outset, the economic team wanted to make it clear that the spending cap established by the PEC (Proposed Constitutional Amendment) would also apply to civil servants. However, this initiative was reportedly blocked by Michel Temer and interim president Michel Temer himself before the economic measures were announced. The fear was that civil servant unions would resort to confrontation upon receiving the news as a fait accompli.
Now, faced with the negative repercussions created by the increase approved by the Chamber, the Ministry has decided to take a position against the adjustments.
Check out the full text of the Ministry of Finance's statement on the matter.
"The government has already announced that it will propose a constitutional amendment to the National Congress that will, for the first time, limit the growth of public spending and provide the necessary structural adjustment to public accounts."
This proposed constitutional amendment (PEC) will adopt the values considered in this year's budget and will stipulate that there will be no real growth, meaning that these values will be adjusted based on the inflation measured in the previous year.
It is the prerogative of the National Congress to decide where public resources will be allocated, respecting this new constitutional limit, should the proposed amendment be approved.
The salary adjustment for civil servants will be subject to the constitutional spending limit. Therefore, there is no disagreement between the Ministry of Finance and the acting President of the Republic, Michel Temer.