Economy

Lula’s team evaluates a mix of instruments to make R$ 175 billion viable outside the ceiling

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Allies of the president-elect, Luiz Inácio Lula da Silva (PT), are studying merging three instruments to make it possible to include the priorities of the future government in the 2023 Budget. Preliminary calculations indicate that it would be about R$ 175 billion above the ceiling limit. The president-elect addressed the issue this Monday (7th) at a hotel in São Paulo.

It is also being studied to present to Congress the proposal to completely and even permanently withdraw the expenses with Auxílio Brasil (which will be renamed as Bolsa Família) from the calculation of the ceiling. As this would depend on negotiation with parliamentarians and analysis of the measure’s impact on the financial market, there is no consensus on its feasibility.

One way to make the release of resources viable would be the so-called PEC (Proposed Amendment to the Constitution) of the transition to authorize the expansion of expenditures sought by the president-elect’s team.

Another option would be to negotiate the relocation of amendments with the Budget Rapporteur. The idea is to convince parliamentarians to give up projects presented so that they are replaced by priorities indicated by the future government.

Finally, there is also a discussion on how to guarantee the release of extraordinary credit in 2023, which can be carried out via a provisional measure.

The PT president, Gleisi Hoffmann, and former minister Aloizio Mercadante were present. Also following the discussions were senator-elect Wellington Dias (PT-PI) and senator Paulo Rocha (PT-PA).

Senators presented to the president-elect a study by the technical advisor on the cost of proposals announced during the campaign and alternatives to enable the inclusion of priorities in the 2023 Budget.

According to Lula’s allies, the estimate is that around R$ 175 billion will be needed above the ceiling limit to meet the president-elect’s priority proposals.

In the social area, preliminary calculations indicate that at least around BRL 52 billion would be essential to maintain Auxílio Brasil at BRL 600 and another BRL 18 billion to guarantee an additional BRL 150 per child from zero to six years of age.

There is an expectation of including at least R$ 100 billion for other expenses, including investments.

Among the priorities is to guarantee resources for the resumption of Minha Casa Minha Vida. The program, renamed Casa Verde e Amarela during the Bolsonar administration, practically ceased to exist due to lack of funds.

PT understands that the affordable housing program has multiple benefits. In addition to being an efficient social policy, it activates civil construction, an engine of the economy, and a strong generator of jobs.

The parameters for releasing funds are being discussed with the TCU (Union Court of Auditors). Last week, the vice president-elect and coordinator of the transition, Geraldo Alckmin (PSB), was in court to start discussions on the Budget. This Tuesday, there will be a new meeting at the TCU with representatives of the transition.

After the negotiation, a formal consultation with the court will be made to obtain authorization to be expressed in the LDO (Budget Directive Law).

The list of promises that still need to be addressed in 2023 includes 11 items, including the guarantee of resources for the Popular Pharmacy and contributions to public security and day care programs. Lula will have to decide what the priorities are so that the total demand is closed.

Alckmin should meet on Wednesday (9) with the budget’s rapporteur, senator Marcelo Castro (MDB-PI), and the commission’s president, Celso Sabino (União-PA), in Brasília.

Lula should go to Brasília on Tuesday night (8), where he will meet with the president of the Federal Supreme Court (STF), Rosa Weber, the president of the Chamber, Arthur Lira, and the president of the Senate, Rodrigo Pacheco.

The tour would serve as a demonstration of respect for the institutions.


  • Expansion of the Aid Brasil/Bolsa Família to R$ 600: R$ 52 billion
  • Additional benefit of BRL 150 per child up to 6 years: BRL 18 billion
  • Real increase in the minimum wage: BRL 3.9 billion to BRL 6 billion
  • Zero the SUS queue and carry out a vaccination campaign: at least BRL 10 billion
  • Recomposition of resources for Popular Pharmacy: R$ 2 billion
  • Recomposition of culture and science resources: R$ 6.9 billion
  • Investments, including housing program: indefinite
  • Recomposition of other social areas that had budget cuts: indefinite
  • Recomposition of resources for school lunches: indefinite
  • Recomposition of resources for indigenous health: undefined
elections 2022leafLulaPT

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