Senate votes on Transition Amendment, following approval by the Chamber of Deputies.
For the proposal to be approved, at least 49 of the 81 possible votes from the senators are needed.
247 - Senators began voting this Wednesday (21) on the Proposed Amendment to the Constitution (PEC) of the Transition, which was approved by the Chamber of DeputiesFor the proposal to be approved in the Senate, 49 of the 81 senators must agree with the bill. In the Chamber of Deputies, 308 votes are needed out of the 513 federal deputies – 331 voted in favor of the bill.
According to the new proposal, the government of president-elect Luiz Inácio Lula da Silva (PT) will have R$ 145 billion outside the spending cap for one year and, as a consequence, will leave the Bolsa Família benefit at R$ 600 plus an additional R$ 150 per family with children up to 6 years old.
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The former mayor of São Paulo Fernando Haddad (PT), future Minister of Finance, and the federal deputy Rogerio Correia (PT-MG) They commented on the importance of the project's approval in the Chamber.
Read below the report from Agência Brasil on the subject:
The Chamber of Deputies concluded this Wednesday (21) the consideration of the Proposed Amendment to the Constitution on Transition. By 331 votes in favor and 163 against, parliamentarians approved the text in the second round. As it was modified by the deputies, the matter returns to the Senate for analysis and should be voted on later today.
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The proposal aims to guarantee resources for social programs in the 2023 Federal Budget, such as the continuation of the R$ 600 Brazil Aid payment, which will once again be called Bolsa Família, and a real increase in the minimum wage starting in January.
The proposal establishes that the new government will have R$ 145 billion in addition to the spending cap, of which R$ 70 billion will be used to fund the social benefit of R$ 600 with an additional R$ 150 per child up to 6 years old.
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The remaining R$75 billion can be allocated to expenses such as health policies (R$16,6 billion), including the Farmácia Popular program and the real increase in the minimum wage (R$6,8 billion). The PEC also opens up fiscal space for another R$23 billion in investments over a period of one year.
Modifications
The deputies approved two modifications to the text of the PEC (Proposed Constitutional Amendment). The first change reduced the period for extending the spending cap to one year, unlike the two-year period in the text approved by the Senate. Initially, the proposal negotiated by the elected government was valid for four years.
Another approved amendment altered the allocation of resources from the so-called "secret budget," the rapporteur's amendments, deemed unconstitutional by the Supreme Federal Court (STF). An agreement between party leaders stipulated that the resources will be divided between individual amendments and programs not mandated by the Executive branch. The Chamber of Deputies will receive 77,5% of the total value of the individual amendments, and the Senate, 22,5%.
Golden rule
The proposed constitutional amendment waives the "golden rule" regarding the need for the Executive Branch to request authorization from the National Congress to issue public debt securities to finance current expenses amounting to R$ 145 billion next year. These funds will also be excluded from the primary surplus target.
Also removed are the spending cap limitations on donations received by federal universities, resources for gas assistance in 2023, and the transfer of resources from states to the Union to carry out engineering works and services. Donations for socio-environmental projects related to climate change are exempt from the limitation.
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