See Lula’s proposals for the economy

Elected president of Brazil for the third time this Sunday (30), Luiz Inácio Lula da Silva (PT) said in a speech shortly after the victory that he would immediately start to assemble a team and survey the current situation in the country to be able to govern from January 2023

Without a detailed government program, Lula’s campaign was accused of wanting a blank check to govern.

Supported in the second round by former opponents, such as senator Simone Tebet and the president of the PDT, Carlos Lupi, Lula accepted the allies’ proposals and, days before the second round, released the “Letter for the Brazil of Tomorrow”, in which lists 13 priority points, a synthesis of the promises announced throughout the campaign.

With the election over, the main challenge for Lula and his team now will be to make the pledges fit into next year’s budget, which would require obtaining a license from Congress to spend more than the ceiling allows.

See the president-elect’s initial proposals.

PRIVATIZATIONS

It defends the protection of the country’s heritage and the use of state-owned companies for economic development. Strongly opposed to the privatization of Petrobras, Eletrobras and Correios. It also wants to strengthen public banks to foster development. In a debate on Globo, however, he defended that inefficient state-owned companies be closed.

MINIMUM WAGE

In advertising material, the campaign promised readjustments above inflation for the minimum wage. Valuation policy would recover the population’s purchasing power and is considered essential to boost the economy. In an interview with Sheeta member of the PT campaign stated that real minimum wage gain in 2023 could be 2%.

BRAZIL AID OR INCOME TRANSFER

In advertising material published at the end of August, the campaign started to promise another R$ 150 per child up to six years old (in addition to the minimum of R$ 600 per household). The program foresees recovering characteristics of Bolsa Família and expanding the guarantee of citizenship for the most vulnerable. The objective is to advance in stages towards a universal system with a basic citizen’s income

EMPLOYMENT AND ECONOMIC RETURN

Resumption of investments in infrastructure and sanitation, re-industrialization on technological and environmental bases, in addition to promoting agrarian reform, the creative economy and the green economy. Support for cooperativism, entrepreneurship and micro and small companies

EXPENSES CEILING

Repeal the spending ceiling and review the current Brazilian tax regime to one that is credible, predictable and sustainable. The goal is to “put the poor on the Budget and the super-rich paying taxes”

TAX REFORM

It proposes reform that simplifies taxes and makes the poor pay less and the rich more. It also promises to combat tax evasion, simplify taxes, reduce consumption taxation, and tax relief on products with greater added value.

LABOR REFORM

Repeal of parts of the labor reform and new legislation with social protection, focused on self-employed, domestic, teleworking, home office and workers mediated by apps

SOCIAL SECURITY REFORM

Reconstruction of security and social security for broad inclusion of workers, reviewing measures approved by the Bolsonaro government

CENTRAL BANK

The priority task will be to coordinate the economic policy to fight inflation and face the famine, in particular that of food and fuel and electricity.

INDUSTRY

Reverse the process of de-industrialization and promote the re-industrialization of sectors and those associated with the transition to a digital and green economy; industrial policy must focus on the country’s priorities and leverage national technological capacity and innovation

ENERGY

Ensuring the country’s energy sovereignty and security, with an expansion of supply, deepening the diversification of the matrix, with the expansion of clean and renewable sources at prices compatible with the Brazilian reality

Read the entire Letter to Brazil of Tomorrow

See the points highlighted by the letter:

1 – Economic development with investments

Text states that “the first initiative will be to define with the governors of the 27 states a plan to resume stopped works and define priority works”, expansion of the internal market and a new labor legislation. The government also promises to create a new program, “Empreende Brasil”, aimed at micro, small and medium-sized companies, with low interest credit.

2 – Social development with work and income

Text promises a “strong minimum wage”, above inflation, a new Bolsa Família with a benefit of R$ 600 and an additional R$ 150 per child up to 6 years old, a debt renegotiation program called “Desenrola Brasil”, and exemption of Income Tax for those who earn up to R$5,000 per month in the context of a tax reform. The letter also talks about equal pay for men and women, without specifying what measures would be taken to achieve this.

3 – Sustainable development and ecological transition

Letter says that Lula is committed to zero deforestation in the Amazon and emission of greenhouse gases in the electricity matrix, and promises to support low-carbon and family agriculture. It repeats a promise already made to create a Ministry of Native Peoples and says it will put an end to illegal mining on indigenous lands.

4 – Education

It promises to expand the Quota Law, including postgraduate courses, and to invest in more universities. It also says it will build daycare centers, increase resources for school lunches, implement full-time education and a scholarship for students who complete high school. He states that Lula will universalize broadband in schools and expand technical and professional education.

5 – Health

He says he will “strengthen” the SUS, resume the Popular Pharmacy, create the “Doctors for Brazil” program, create a National Telemedicine Center, invest in women’s health and in the National Vaccination Program.

6 – Housing and infrastructure

It promises to resume the Minha Casa Minha Vida program (which was renamed Casa Verde and Amarela in the Bolsonaro government), universal access to light and water and resume stopped works with a New PAC.

7 – Security

It promises the creation of a Ministry of Public Security, which would implement a Single Public Security System. He also says that he will invest in the training and professionalization of police officers and review decrees and ordinances that allowed access to weapons. It also promises to face “the increase
alarming number of cases of femicide and violence against black youth, especially in the peripheries”.

8 – Culture and sports

It promises to recreate the Ministry of Culture, which would implement a National System of Culture. It also says that it will resume the Cultura Viva program and increase investment in Bolsa Atleta.

9 – Human rights and citizenship

He says he will face discrimination such as machismo, racism, LGBTphobia and ableism. He promises to recreate the Ministry of Racial Equality and ensure freedom of religion and worship.

10 – Reindustrialization of Brazil

It promises a “national strategy to advance towards the knowledge economy”, with an emphasis “on the software, defense, telecommunications and other sectors of new technologies”.

11 – Sustainable agriculture

It promises to invest in Embrapa, create a Degraded Pasture Recovery Plan and reduce interest rates in the Safra Plan, Pronamp and Pronaf “for producers committed to environmental and social criteria”. It also says that it will “establish a policy of minimum prices to stabilize food prices and guarantee food on the table of families”.

12 – Foreign policy

It promises to invest in regional integration in Mercosur, in the BRICS, with African countries, the European Union and the USA. He says he will strengthen pacts such as the Climate Convention.

13 – Democracy and freedom

It promises to strengthen democracy and emphasizes the commitment to “management of the economy with credibility, responsibility and predictability”.