Congress reallocated social funds to privilege works on the eve of PEC of Precatório

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In addition to obtaining the release of R$ 1 billion in parliamentary amendments on the eve of the vote on the PEC on precatório, the Congress made a reallocation of the funds it has to use in political negotiations — more than R$ 50 million were withdrawn from the social area and destined to projects related to sports works.

Another R$50 million were changed in the education area and began to favor the construction of day care centers. Works, such as sports courts and day care centers, are usually prioritized by congressmen because they have more electoral impact.

The exchanges were made within the value of the 2021 Budget intended for parliamentary amendments. These amendments are instruments for deputies and senators to send resources from the federal budget for projects in their electoral bases.

Currently, the main currency of political negotiation is called the rapporteur’s amendment. The money available this year is R$ 16.8 billion.

as showed the sheet this Thursday (4), nearly R$ 1 billion were invested in rapporteur amendments between October 28 and November 3, when the PEC was voted. The commitment is the first stage of the process for the money to reach the electoral bases.

The basic text was approved in the first round by 312 to 144. It is expected that the highlights and the second round will be appreciated on Tuesday (9).

Last week, the government failed to align the House base to get the 308 votes needed to pass the proposal. It was necessary to expand the articulation with allied parties and also with deputies with independent and even opposition acronyms.

The amount of R$ 1 billion, for example, is equivalent to what was committed throughout the month of September as a rapporteur’s amendment.

The amendments released on the eve of the PEC vote of the Precatórios mainly serve works (especially related to roads and paving), projects in agribusiness and the health area.

The PEC allows for the expansion of public spending and makes it possible to expand the Auxílio Brasil to R$400 promised by President Jair Bolsonaro (no party) in an election year.

In order to be able to approve the basic text of the precatório PEC on a tight scoreboard, the government had to give in on controversial points of the bill and negotiated the release of parliamentary amendments to deputies who support the proposal.

The budget’s budget desk was led by the president of the Chamber, Arthur Lira (PP-AL), who is an ally of Bolsonaro. Lira controls most of the rapporteur’s amendments.

Since October 28, there have also been changes in the allocation of these resources. The exchanges were within what was already foreseen for the R$ 16.8 billion of amendments by the rapporteur.

According to Congress technicians, this relocation can be done as long as there is the approval of the author of the amendment. The 2021 Budget rapporteur was Senator Márcio Bittar (MDB-AC). He, however, is only the official author of the amendments, which are operated by government allies.

Wanted, the Ministry of Economy confirmed that exchanges can be made. “In the case of amendments, in general, the modifications by an act of the Executive result from a request or occur with the author’s own agreement”, he informed, in a note.

The Psol leadership in the Chamber called on the TCU (Court of Accounts of the Union) to investigate the use of public funds in search of political support in favor of the PEC dos Precatórios.

Bolsonaro determined, in October, the increase of Auxílio Brasil to R$ 400, triggering a crisis between the political and economic wings of the government.

The solution to meet the president’s demand was to circumvent the spending ceiling, proposing a change in the calculation of the fiscal rule in the PEC dos Precatórios. This PEC, which was already in the Chamber, provides for a limit for payment of court orders (debts of the Union recognized by the courts), which frees up more space in the Budget.

The two changes provided for in the PEC —involving the spending ceiling and court orders— have the potential to open a gap of more than R$ 90 billion next year, guaranteeing resources for Auxílio Brasil, aid for truck drivers and offsetting the increase in expenses related to the high of inflation.

The increase in spending in the social area is a bet by Bolsonaro and his allies to try to strengthen the president in the 2022 reelection race.

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