Pacheco says this is not the time to relax the ceiling and the PEC of the Precatório focuses on Brazil Aid

The president of the Senate, Rodrigo Pacheco (PSD-MG), said this Monday (15) that the Legislative House is committed to regulating public spending and that it is not yet time to relax the spending ceiling

The dribble in the fiscal rule that prevents the increase in public expenditure, however, is contained in the PEC (proposal to amend the Constitution) of the Precatório already approved in the Chamber. The measure defaults on the Union’s judicial debts and circumvents the ceiling limit to expand Jair Bolsonaro’s government spending in an election year.

“We have the challenge of maintaining fiscal rigidity and fiscal responsibility in Brazil. Of course, at some point, when we have a good prospect of growth, good tax revenue, if a more effective fight against poverty eradication, we will be able to re-discuss the ceiling of public spending and, eventually, we have the condition to make it even more flexible. But this is not the current moment,” he said.

In a speech with a strong political campaign tone, Pacheco also warned of the risks of fiscal loss for the country’s reputation with the international community and foreign investors.

The president of the Senate also denied that the PEC dos Precatórios has the objective of releasing funds for parliamentary amendments and said that the measure needs to focus on the social interest.

According to him, the priority of the proposal is “the creation of the necessary fiscal space to insert a sustainable social program, with an updated value, that can allow a minimum purchasing power to the Brazilian population”.

The possibility of granting billions of extra reais for parliamentary amendments is a constant criticism of the PEC, approved in two rounds in the Chamber of Deputies and now being processed in the Senate.

Pacheco drew attention to the increase in the cost of living in Brazil and stated that it is the government’s duty to update social benefits to an amount compatible with the population’s expenses.

“Beans are no longer at the same price, rice is no longer at the same price. The energy bill is higher, gasoline is R$ 7. It is necessary to update the purchasing power of Brazilians. The government is not doing any favors with this, it is your obligation to update the average ticket from R$189 to at least R$400, so that the necessary guarantee is given to the citizen,” he said.

The statements were made this Monday afternoon (15) in Lisbon, at the opening of a legal forum organized by Minister Gilmar Mendes, from the Federal Supreme Court. The event brings together several personalities of politics and justice in Brazil in the Portuguese capital.