In a victory for Lula, the Senate approves the Transition Amendment with a comfortable margin in the first round.
According to the Proposed Amendment to the Constitution, the government of the president-elect will be able to invest R$ 145 billion outside the spending cap.
247 - The Senate plenary approved this Wednesday (7), in the first round, the base text of the PEC (Proposed Amendment to the Constitution) of the Transition. There were 64 votes in favor and 16 against. 49 were needed. According to the PEC, the government of President-elect Luiz Inácio Lula da Silva (PT) will be able to invest R$ 145 billion outside the spending cap in 2023 and 2024 for the payment of Auxílio Brasil (which will be renamed Bolsa Família). The PEC, valid for two years, also releases another R$ 23 billion for investments outside the cap in case of collection of extraordinary revenues.
One of the main proposals of the future government is the restoration of social and labor rights and public investments. The next administration wants the Bolsa Família program to provide R$ 600 per family plus R$ 150 per child up to six years old. The amount allocated to the program without the PEC (Proposed Constitutional Amendment) is only sufficient to pay R$ 405 per family.
With the money outside the spending cap, the Lula government also intends to invest in programs such as Farmácia Popular (Popular Pharmacy), Minha Casa, Minha Vida (My House, My Life), and adjust the minimum wage above inflation.
According to the spending cap rule, approved during Michel Temer's (MDB) government and supported by Jair Bolsonaro's (PL) government, the investment made by the federal government in a given year must represent that of the previous 12 months, adjusted only for inflation. This weakens purchasing power, harms public services, and prevents a portion of society from accessing social and labor rights.
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