The construction industry raised the tone of criticism of Bolsonaro’s package to try to alleviate the economy in an election year, which includes the withdrawal of up to R$1,000 from the FGTS (Fundo de Garantia do Tempo de Serviço).
“The generation of employment is replaced by consumption, an immediate vision that all previous experiences have shown to be not the best”, says José Carlos Martins, president of CBIC (entity that represents companies in the sector).
“We recognize people’s immediate need, but FGTS is the worker’s patrimony, not an income supplement. Each withdrawal is a stimulus to consumption and a dilapidation of the patrimony that the worker may need in the future”, he says.
The Bolsonaro government released this Thursday (17) the withdrawal of up to R$ 1,000 to about 40 million workers with a balance in their FGTS accounts.
The initiative is part of the broad package of measures to release more than R$ 150 billion in resources at a time of high inflation and the population’s indebtedness.
The release of the FGTS is a thorn in the side of construction, because it compromises the use of the fund for real estate financing.
In 2019, the Bolsonaro government even postponed the announcement of its first round of withdrawals of funds after suffering pressure from the sector, which complained that the measure would harm the purchase of real estate and the financial situation of companies in the sector.
Joana Cunha with Andressa Motter and Ana Paula Branco
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