Government revises budget, estimates Brazilian Aid on average at R$ 415 and ignores civil servant adjustment

The Ministry of Economy asked Congress for a series of adjustments to the 2022 Budget and estimated that the average benefit of Auxílio Brasil will be R$ 415 next year.

The suggested changes leave out any prediction of readjustment for public servants.

The changes were included in an official letter sent on Wednesday (8) by the Jair Bolsonaro (PL) government to the General Rapporteur for the Budget, Deputy Hugo Leal (PSD-RJ). He may or may not accept the suggestions.

The additional expenses will be accommodated in the space of R$ 106.1 billion that the government estimates with the complete approval of the PEC (proposed amendment to the Constitution) of the Precatório, which changes the spending ceiling — a rule that limits the advance of expenses to inflation — and postpones the payment of judicial debts of the Union against which there is no longer any appeal.

According to government calculations, Auxílio Brasil will need an increase of BRL 54.6 billion in its budget for next year, reaching almost BRL 90 billion.

Estimates were made with the premise of an average benefit of R$415 and inclusion of families that, on November 30, 2021, were eligible for the social program, but were in line awaiting inclusion.

The government intends to guarantee a minimum of R$400 per family, but the average benefit is higher because some beneficiaries may receive higher amounts, considering the number of dependents and their ages.

The expense also takes into account the lines of poverty —up to R$210 per person— and extreme poverty —up to R$105 per person— approved by Congress in the law that creates Auxílio Brasil in place of Bolsa Família, a program that was the hallmark of PT administrations .

The proposed change in the 2022 Budget also reserves R$ 39 billion for the correction of mandatory expenses due to the acceleration of inflation.

The government considers that the INPC, an index that corrects social benefits and pensions, will close the year at 10%. This would bring the minimum wage to R$1,210 in 2022, if there is only the replacement of purchasing power, with no real gain.

The Ministry of Economy also asks for the inclusion of R$ 7.5 billion in health expenses, of which R$ 4.5 billion with the purchase of vaccines, and R$ 1.9 billion to fund the Gas Aid to needy families.

The calculations of Auxílio Gás consider that the benefit, equivalent to 50% of the value of the cylinder, will be R$56, paid to 5.5 million families.

The readjustment of civil servants, which has been defended by Bolsonaro, was left out of the revisions proposed by the Economy. On Wednesday (8), he had returned to talk about granting readjustments for civil servants in an election year.

In an interview with Gazeta do Povo, the president said that the measure would be taken without breaking the spending ceiling.

“It would have [que ser reajuste de] 3%, 4%, 5%, 2%… Let it be 1%. This is the idea. Because we are completing three years in my government without readjustment. Now, the readjustment is not to restore all inflation, because we don’t have space for that,” said Bolsonaro.

Earlier, the president had said in Bahrain, on a trip in November, that he intended to use part of the fiscal slack generated by the approval of the PEC dos Precatório to grant a salary increase.

“Inflation reached double digits. [ministro da Economia] Paulo Guedes, and in passing the PEC dos Precatórios, there has to be a little space to make some adjustments. not what they [servidores] they deserve it, but it’s what we can give,” he said.

Part of the PEC was enacted this Wednesday, opening BRL 62.2 billion to expand spending. There are still R$43.8 billion to go, which depend on approval by the Chamber, after changes in the Senate and the slicing of the text.

In all, the revisions to the 2022 Budget proposed by the Economy add up to R$ 103.4 billion. Another R$ 2.7 billion will be added to the ceilings of other Powers, such as the Legislative and Judiciary, which will also benefit from the revision in the spending limit.

Despite this, technicians from the budget area warn that the expenses listed by the government are not the only ones that will need to be observed by the Budget rapporteur.

The R$ 103.4 billion does not include, for example, the additional R$ 5.3 billion that will be disbursed by the government with the extension of the exemption from the companies’ payroll, approved by the National Congress and which is approved by the president.

There are also collection gains that were incorporated by Congress into the 2022 Budget and that generate obligations to transfer resources to funds such as the FNDCT (National Scientific and Technological Development Fund).

These transfers can consume space on the roof and were not calculated by Economy. Therefore, technicians assess that the fiscal scenario remains very tight for next year.