Elected government considers splitting Ministry of Planning

The reform of the ministerial structure, under discussion in the elected government of Luiz Inácio Lula da Silva (PT), may not only recreate the Ministry of Planning, Management and Budget, but also subdivide the portfolio.

The possibility of separating budget and personnel management (short-term activities) from the preparation of projects and public policies with a long-term vision is under analysis.

The discussion for a possible split was confirmed by the technical coordinator of the transition team, Aloizio Mercadante, this Tuesday (6) during a conversation with journalists. The final design, highlighted Mercadante —whether there will be the creation of two ministries or secretariats under a single folder— is still under discussion.

“Here in Planning, there is a discussion that is still evolving: whether we create a single ministry or somehow separate this function, of planning, budget and management, from the [discussão] of digital government and State reform, because the State needs to be reformed, needs to increase efficiency and improve service conditions”, said the PT.

According to him, this is an issue followed by the president-elect himself. “Lula gave guidance and we are working based on his guidance, but the issue has not been resolved,” he stated.

The Ministry of Planning, Budget and Management was incorporated into the Ministry of Economy in the reform promoted by Paulo Guedes (current Minister of Economy) at the beginning of the Bolsonarist administration in 2019, helping to create the super folder that brought together powers and budgets.

According to Mercadante, it was a “serious mistake” to end Planning because this is the ministry that meets all intra-government demands.

“The ministries report to the Ministry of Planning,” he said. “Therefore [a sua restituição]the Treasury can take care of Treasury affairs, credit and investment policy.”

According to reports made to Sheet, the proposal to separate short- and long-term tasks did not come from the political area. It is a suggestion initially defended by technicians.

However, the split would contemplate the coalition’s ambition to recover the government’s capacity to elaborate public policies of a structuring nature. The PAC (Growth Acceleration Program), for example, was linked to the old Planning, and future investment projects may also be under the new folder.

There are even suggested names for a ministry with these characteristics.

Among them is economist André Lara Resende, who works in the economy transition group. One of the fathers of Plano Real, he is recognized for his capacity as a formulator.

Another name mentioned was that of fellow economist and father Real Persio Arida, who is also in the transition group. However, Arida declares that she has no intention of returning to public life.

During the campaign, even the name of Fernando Haddad was considered for the folder. More recently, bets have grown that he can take over the farm.

Among the entities that presented subsidies for the revision of the structure of the Ministry of Planning is AFIPEA (Association of Employees of the Institute of Applied Economic Research). A note sent by the association suggests different organizational charts for recreating the folder. The change in structure, points out the entity, can be made through the Presidential Decree of January 1, 2023.