Economy

PEC Kamikaze: understand what is behind the proposal that wants to unlock social programs

by

The Federal Senate is preparing to vote on the PEC (Proposal for a Constitutional Amendment) 1, called the PEC Kamikaze, which provides for the release of federal government spending and the creation of new social benefits in an election year, which would be possible with the enactment of a state of emergency.

The text replaces the PEC on Fuels (PEC 16), abandoned by the federal government. The vote on the new proposal was scheduled for this Wednesday (29), but was postponed and should take place this Thursday (30).

Are PEC Kamikaze and PEC 16 the same?

Not. The PEC on Fuels (PEC 16) was no longer voted on by the Federal Senate to give way to the so-called PEC Kamikaze (PEC 1). While PEC 16 had the objective of creating subsidies to lower the price of gasoline, PEC 1 has the mission of unlocking social programs and increasing the granting of benefits in an election year.

Whose proposal was the Kamikaze PEC?

The PEC Kamikaze (PEC 1) was authored by Senator Carlos Fávaro (PSD-MT) and was presented in February this year. The rapporteur for the proposed amendment will be Senator Fernando Bezerra Coelho (MDB-PE), who was the rapporteur for the PEC on Fuels.

The Fuels PEC (PEC 16) was proposed by the government leader in the Senate, Carlos Portinho (PL-RJ).

Why is the proposal called Kamikaze?

The proposed amendment is called kamikaze for putting public accounts at risk. It had already been presented in February to try to help professionals impacted by the rise in fuel prices. It came to be called Kamikaze because its impact, at that time, was estimated at more than BRL 100 billion.

What does the proposal suggest?

The proposed amendment aims to unlock social programs, identified by the Bolsonaro campaign as fundamental to recovering the disadvantage in the polls of voting intentions for president, led by Luiz Inácio Lula da Silva (PT).

The main target is to eliminate the line for the Auxílio Brasil program, in addition to increasing the benefit amount to R$ 600 this year. To allow for increased spending in an election year, the strategy will be to declare a state of emergency.

The decree is necessary from a legal point of view to create a new program, which is aid for self-employed truck drivers. The program will pay R$ 1,000 to autonomous transporters registered with ANTT (National Land Transport Agency) until May 31.

MEASURES PROPOSED IN THE KAMIKAZE PEC

BRAZIL AID WILL INCREASE TO BRL 600

  • Expansion from R$ 400 to R$ 600 this year and the government promises to eliminate the queue
  • The total cost is BRL 26 billion

TRUCKERS WILL HAVE ASSISTANCE OF BRL 1,000

  • Benefit of BRL 1,000 will be paid to self-employed truck drivers registered with ANTT (National Land Transport Agency) until May 31
  • The cost is BRL 5.4 billion

GAS ALLOWANCE OF BRL 120

  • The amount of the benefit paid every two months will double, to about R$ 120 per bimester
  • Currently, the benefit is 50% of the average value of the 13 kg cylinder (considering the average of the last six months)
  • The cost of the measure is R$ 1.05 billion

MONEY FOR FREE TRANSPORTATION FOR THE ELDERLY

  • Authorize the transfer of funds to guarantee free access to the elderly in municipal and intercity public transport in metropolitan regions. Gratuity, provided for by law, is already in effect today
  • The cost of the measure is R$ 2.5 billion

TRANSFER OF FUNDS TO THE ETHANOL SECTOR

  • Transfer to states to compensate for cuts in tax rates on ethanol and maintain the competitiveness of the fuel compared to gasoline
  • The cost of the measure is BRL 3.8 billion

STATE OF EMERGENCY DECREE

  • Enables the payment of new benefits, such as assistance for truck drivers, even in an election year
  • State of emergency aims to protect the government in cases of legal challenges for violating electoral legislation.

How much should it cost?

The measure has an expected impact of R$ 38.75 billion in addition to the government spending ceiling.

When should the PEC be voted on?

The vote was expected to take place this Wednesday (29), but after a disagreement between the senators, who were not convinced that the text would not be a blank check for the government, the vote was postponed and is scheduled to take place this Thursday. fair (30).

What does she need to be approved?

To enter into force, the PEC needs to be approved in two rounds by both the Senate and the Chamber of Deputies and have three-fifths of the votes of parliamentarians in both houses. After approval, it is enacted automatically, without the need for presidential sanction.

What is the justification for a state of emergency?

The rapporteur of the matter, senator and former leader of the government Fernando Bezerra (MDB-PE) points to the War in Ukraine and the impact on fuels to ask for the recognition of the state of emergency.

What changes with the state of emergency?

A state of emergency can be decreed in extraordinary situations. It can only be declared by the government in the face of some threat that could cause instability in the country.

In Brazil, the electoral law prohibits the implementation of new benefits in the year of the elections, precisely to avoid the use of the public machine in favor of one of the candidates. The only exceptions are programs that are already running or when there is public calamity or a state of emergency.

In the case of PEC Kamikaze, the state of emergency would be regulated by the proposal itself and would remove all fences or restrictions provided for in the legislation.

bolsonaro governmentBrazil Aidbudgetgovernment spendingleafNational CongressPolicysenatesocial program

You May Also Like

Recommended for you