Economy

Lula appoints Wellington Dias to negotiate 2023 Budget with Congress

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President-elect Luiz Inácio Lula da Silva (PT) appointed former governor and senator-elect Wellington Dias (PT-PI) to act in negotiations around changes to the 2023 Budget proposal.

The task is considered strategic and at the same time sensitive. In an ideal scenario, the new government will have about two months to articulate the necessary changes. The proposal currently being processed is defined by campaign members as a piece of fiction in the face of the profusion of cuts in social policies.

A first meeting with the budget’s general rapporteur, senator Marcelo Castro (MDB-PI), and other congressional leaders is scheduled for next Thursday (3), in Brasília.

The most immediate concern of Lula’s team is to ensure the maintenance of the payment of the minimum amount of R$ 600 to the beneficiary families of the Auxílio Brasil program. The project sent at the end of August guarantees an average value of only R$ 405.21.

Campaign members estimate the need for an additional R$50 billion in the Budget to ensure the continuity of payments. Under current rules, there is no room for the spending ceiling — a limit provided for in the Constitution that prevents spending from growing at a rate above inflation.

The team also wants to guarantee resources to give a real increase to the minimum wage, eliminate the SUS (Unified Health System) queues, rebuild programs such as the Popular Pharmacy, ensure the operation of centers that register the population for social programs and resume works structuring.

Dias’ role will be to act in the dialogue with Congress to promote adjustments in the Budget, based on the government proposal that emerged victorious from the polls.

The elected senator is from the same state as Marcelo Castro, proximity that tends to facilitate dialogue. Even before the conclusion of the elections, the two were already having conversations given the urgency of the topic.

Dias’s assignment to one of Lula’s team’s top-priority tasks during the transition comes as he emerges as one of those rated to take over the Ministry of Finance from next year.

The former governor also delivered good results for the PT in his electoral stronghold. Among the ten municipalities that gave Lula the highest votes in Brazil, in proportional terms, eight are in Piauí.

The president-elect has already made it clear that he prefers a political name to head the economic team. Another strong name is that of federal deputy and former Minister of Health Alexandre Padilha (PT-SP). The governor of Bahia, Rui Costa (PT), and the former Minister of Finance and former President of the Central Bank Henrique Meirelles are also mentioned.

The decision to appoint Dias to take care of the most immediate issues of the Budget was taken today by Lula and his deputy, Geraldo Alckmin, in a meeting with the presence of PT president, Gleisi Hoffmann, and other members of the coordination of the campaign.

In addition to the budget issue, PT’s team should open another front of action to advance in the governmental transition. Gleisi should seek agendas for the next few days, meetings with representatives of the parties that form the alliance that elected Lula and also with the presidents of the Chamber, Arthur Lira (PP-AL), and of the Senate, Rodrigo Pacheco (PSD-MG).

The PT president must also seek a channel for dialogue with the Judiciary and with the government of Jair Bolsonaro (PL) to formally start the transition, following the legal procedures.

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