rapporteur removes nursing floor and state capitalization from exceptions to the rule

BRASILIA – The deputy Claudio Cajado (PP-BA), rapporteur of the tax framework in the Chamber, removed from the list of exceptions of the rule of control of expenses the expenses of the Union with the aid to States and municipalities in the payment of the minimum wage for nurses, nursing technicians and midwives.

Expenses with capitalization of non-financial state-owned companies, resources from Fundeb (Fund for the Maintenance and Development of Basic Education), the Constitutional Fund of the Federal District and resources for the National Water Agency (ANA) were also subject to the rule in the report. , which were part of the exceptions in the text sent to Congress by the Ministry of Finance.

The measures represent an increase in the rigor of the fiscal framework, as promised by the rapporteur, who was pressured by deputies. But it’s not all bad news for the political class.

According to Cajado’s proposal, the volume of resources subject to contingency (blocking) will be limited. The government will be able to set aside up to a limit of 25% of discretionary (non-mandatory) expenses, such as investments and expenses with the operation of the public machine. The text elaborated by the economic team made the contingencies optional.

The rapporteur explained that the follow-up of public accounts and the preparation of reports will be maintained on a bimonthly basis to monitor government expenditures and revenues and, if necessary, the contingencies will once again be mandatory, albeit limited.

The text states that 75% of these expenses are the “minimum level of discretionary expenses necessary for the regular functioning of the public administration”. According to the rapporteur’s calculations, the value would represent around R$ 50 billion today, which could be frozen if projections indicate non-compliance with the target.

The number is a gesture for PT members, who saw in automatic contingency a risk of pruning federal investments and policies of interest to the government, such as Minha Casa Minha Vida. The text was presented to party leaders on the night of this Monday, the 15th, with the presence of the Minister of Finance, Fernando Haddad.

Minimum wage and triggers

In response to an appeal by Luiz Inácio Lula da Silva, Cajado preserved the readjustment of the minimum wage above the inflation of the cost containment rule. In the opinion of deputies, as the floor readjustment rule will be dealt with in specific legislation, the discussion was postponed and should not be dealt with at this time.

The PT lost, however, in the punishments in case of non-compliance with the goal. Cajado provides for the sanctions contained in article 167-A of the Constitution, included in the Emergency PEC, of ​​2019, which lists ten measures to contain expenses, including the prohibition on hiring civil servants, the granting of readjustments and tax benefits and the creation of new expenses.

But they should not be triggered at the same time. In the text, Staff creates two steps. In case of non-compliance in the first year, measures such as the granting of tax incentives, the creation and readjustment of mandatory expenses will be prohibited.

Only in the second year of non-compliance will tenders and adjustments to servers be triggered. The measure is again a sign of peace for the PT, which complained of hurting its own base of supporters by endorsing a text that penalized civil service.

In case of non-compliance with the target in the 1st year, it is forbidden to:

• Create jobs that involve increased expenses
• Change career structure
• Create or increase aids
• Create mandatory expense
• Readjust mandatory expenditure above inflation variation
• Expand subsidies and grants
• Grant or extend tax benefit

In case of non-compliance with the target in the 2nd year, it is forbidden to:

• Perform readjustment of expenses with servers
• Admission or hiring of personnel, except for vacant positions
• Carry out public tenders, except for vacancy replacements