Tuesday, December 06, 2022
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Brazilian Senate to vote on proposal on government debts


Brazilian Senate to vote on proposal on government debts

Brasilia, Dec 2 (Prensa Latina) The Brazilian Senate will vote today on the so-called Constitutional Amendment Proposal (PEC) on payment orders of government debts recognized by Justice and the provisional measure of the Brazil Aid program.

In Brazil such rule is called precatório and results in a document indicating the amount of capital owed by the National Treasury to a certain person or company.

When a precatório is issued, the value of the debt must enter the government’s budget, to be paid at a future date. Not paying the debts ratified by Justice violates the Constitution, thus the need to change five articles of the fundamental law of 1988.

The vote on the initiative was postponed the day before shortly after the senators approved the nomination of the evangelical pastor André Mendonça for a seat in the Federal Supreme Court.

At the suggestion of the leader of the Government and rapporteur of the PEC of precatórios, Fernando Bezerra, the president of the Senate, Rodrigo Pacheco, said that the assembly should analyze the measure during this Thursday and vote on it, including by virtual vote.

According to Bezerra, they are close to an agreement on the proposal and reported that he is discussing the deepening of four points of his opinion with other senators and the economic team of the Executive.

For the rapporteur, one of these items refers to the maximum limit related to the precariousness of the Fund for the Maintenance and Development of Basic Education and the Valorization of Teaching.

Approved on Tuesday by the Constitution and Justice Commission, the PEC of precatórios needs at least 49 votes in favor in two rounds of voting in the plenary to be approved.

The PEC modifies the rules of liquidation of these debts of the Government, whose payment was determined by Justice, and changes the deadline for correction of the expenditure ceiling by the Extended Consumer Price Index.

The proposal aims to give Jair Bolsonaro’s administration the margin to implement the Auxiliário Brasil program to replace Bolsa Família, and the government’s intention is that its approval occurs in time to allow the payment of aid before Christmas.

If the PEC is approved, the Executive will be exempted from paying half of the precatórios due next year. This part would be paid in installments over the next 10 years.

It is intended to postpone the disbursement of some US$ 8.2 billion, even if judicial awards are not paid.

The government wants to use these savings to guarantee funds for Auxilio Brasil, an income transfer plan for 17 million poor families in 2022.


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