100 days of the Lula government are marked by a new fiscal rule, resumption of programs and clashes with BC

President Lula (PT)

President Lula (PT)

Photo: Ricardo Stuckert

This Monday, the 10th, Luiz Inácio Lula da Silva (PT) completes 100 days of government. During that time, management invested in some economic and fiscal measures, and also bet on the relaunch of programs that marked previous governments.

Among the highlights are the new fiscal framework, the resumption of fuel taxes, the increase in the minimum wage, the increase in the Income Tax exemption, among others. Check out:

New tax framework

On March 30, the rules of the proposal for a new fiscal rule – called the fiscal framework – were announced by the Minister of Finance, Fernando Haddad, after being presented to the Senate.

If approved by the National Congress, the package of measures will replace the spending ceiling – a mechanism that since 2017 has linked expenditure growth to inflation.

Bolsa Família, minimum wage and income tax exemption

Another government measure in these 100 days was the Provisional Measure (MP) that recreated Bolsa Família, an income transfer program that marked its previous governments and which was replaced by Auxílio Brasil in the previous administration, by Jair Bolsonaro (PL).

The new Bolsa Família continues with a benefit of R$ 600, an amount that was already paid by Auxílio Brasil, with an additional R$ 150 for each six-year-old child in the family and an additional R$ 50 for children over seven years old to young people. under 18 years. With the new formulation of the program, another 700,000 families will be covered after a fine-tooth comb carried out by the government, which identified 1.5 million beneficiaries outside the platform’s rules.

In addition, an increase in the minimum wage from the current R$1,302 to R$1,320 as of May was also announced. According to President Lula, the minimum wage will now have a new annual readjustment formula that will take into account economic growth, in addition to inflation.

The Chief Executive also stated, on the same occasion, that the Income Tax exemption will be extended to all who receive up to R$ 2,640 per month.

fuel tax

At the end of February, Finance Minister Fernando Haddad announced the resumption of collection of federal PIS and Cofins taxes on fuel. In a press conference, Haddad stated that the gasoline tax will be R$0.47, and that of ethanol, R$0.02.

The minister also announced the agreement with States to be compensated for losses caused by the limitation of ICMS on fuels in a total of R$ 26.9 billion.

Amazon Fund

The Amazon Fund, suspended during the Bolsonaro government, has been resumed in the current government. During Lula’s trip to the United States, US President Joe Biden announced the country’s accession to the fund.

Payroll interest, airline tickets and readjustments

In March, the National Social Security Council decided to lower the interest ceiling charged on payroll loans to beneficiaries of the National Social Security Institute (INSS). The Minister of Social Security and chairman of the council, Carlos Lupi, announced the reduction of the ceiling from the current 2.14% per month to 1.70% for retirees and pensioners.

The Minister of Ports and Airports, Márcio França (PSB), announced Voa Brasil, a program formatted so that a specific public, with an income of up to R$ 6,800, can buy airline tickets for R$ 200. The idea, according to him, is that airlines have a segment within their loyalty programs dedicated to the program. With it, civil servants, retirees and pensioners, in addition to students with Fies, will be able to buy two tickets per year at the price of R$ 200 each, in 12 installments through financing from Caixa, which is then responsible for making the payment to the areas .

In these 100 days of government, there was also the announcement of a readjustment of Capes grants, ranging from 25% to 200% in undergraduate, graduate, scientific initiation and Permanence Scholarships. Without adjustment since 2013, master’s and doctoral scholarships will increase by 40% and postdoctoral scholarships by 25%:

Another readjustment announced is about the agreement that guarantees a linear readjustment of 9% in the salaries of federal employees starting in May, in addition to an increase of R$ 200 (43.6%) in food allowance, which goes from R$ 458 to BRL 658. According to the Ministry of Management and Innovation in Public Services, the agreement fits into the reserve of BRL 11.2 billion in the 2023 budget for this purpose. For the readjustment to take effect, it will be necessary to approve a PLN in the National Congress.

My Home My Life and More Doctors

In addition to Bolsa Família, another program that marked the previous Lula governments is Minha Casa, Minha Vida, relaunched in these 100 days of government. In the announcement, Lula says that the new program includes families living in urban areas who earn up to R$8,000 in gross income per month. The design of the program will also include social leasing of properties in urban areas.

In rural areas, the Rural 1 range includes those with annual gross family income of up to R$ 31,680. Rural Range 2 will serve families with a gross annual income of R$31,680.01 to R$52,800. The Rural Range 3 will serve families with annual gross income from R$ 52,800.01 to R$ 96,000.

The Mais Médicos program, created in 2013 to take doctors to remote regions and which was almost extinct in the Bolsonaro administration, was revamped with the forecast of hiring another 15,000 professionals by the end of the year.

Called More Doctors for Brazil, the new program will give priority to Brazilians and aims to increase the number of health professionals in the SUS, especially in more vulnerable areas. There will also be investments in the construction and renovation of basic units to serve the population

Clashes with the Central Bank

The 100 days of Lula’s government were also marked by conflicts and clashes with government authorities, such as the president himself and Minister Haddad, and the Central Bank and its president, Roberto Campos Neto – appointed by Bolsonaro to the post – regarding the basic interest rate. interest, the Selic.

In interviews, Lula raised the tone of his criticisms of the Central Bank and Roberto Campos Neto, saying that “there is no explanation” for the Selic level – currently at 13.75% per annum.

Amid the criticisms of the Lula government, Roberto Campos Neto, stated that the autarchy is a “technical body” and that, therefore, “should not get involved in political terms”.

And in the week that the Copom met to discuss the most recent maintenance of the basic interest rate, Lula mentioned the subject again, saying that he will “continue to beat” the Selic.

“I’m going to keep hitting, trying to fight so that we can reduce the interest rate so that the economy can return to investment,” stated Lula.

Goals yet to come

There are still plans by the Lula government that have not yet materialized, such as the investment program in infrastructure informally called the “new PAC”, which should be announced at the end of April.

The Minister of the Civil House, Rui Costa, reinforced that the new works program will consist of federal investments, concessions and an incentive for new Public-Private Partnership (PPP) projects.

The Chief of Staff has a list of more than 400 enterprises listed as priorities by the States – the folder will still select what will enter the plan.

In a ceremony on International Women’s Day, on March 8, Lula also announced a package of measures to ensure equal pay between men and women in the labor market. The project will still be analyzed in Congress.

Another idea of ​​the government this year is the readjustment of up to 39% of transfers of funds for the School Feeding Program (Pnae), after five years without corrections and a lag of 35% with the accumulation of inflation.

According to the government, the forecast is to invest 5.5 billion reais in the school lunch program, helping about 40 million public school students

In addition, the government also foresees a program to combat drought, called Água para Todos, and the Food Acquisition Program (PAA), for distribution of food to needy families.

An economic program is also in progress that will allocate approximately R$ 2 billion to micro and small entrepreneurs through the BNDES.

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