The Brazilian Senate gave a first legislative victory for Luiz Inácio Lula da Silva by approving this Wednesday a constitutional amendment that will make it possible to fulfill his electoral promise to maintain social aid during the first two years of his government.
The text, which frees for the future government 145 billion reais –28 billion dollars – eliminates a ceiling for these expenses in the next two years, which had been imposed by the Bolsonaro government. The vote got vast majority of the 81 senatorsin two consecutive votes in the plenary session of the Upper House on Wednesday night.
Being processed as a constitutional amendment, the project requires the support, in two votes, of three fifths of the senators (49 of 81) and the deputies (308 of 513) to be approved. The project will continue for analysis in the Chamber of Deputieswhich is expected to start treating it next week.
With support greater than the 49 votes that were necessary, the constitutional amendment will allow maintaining a attendance of 600 reais -144 dollars- and another 150 additional reals for children under six years of age in the most needy families. Funds are also provided for popular pharmacies, school meals and an increase in the minimum wage.
These disbursements are contemplated in the program Brazil Aidwhich will be called again Family Baga name he had during the first two Lula governments between 2003 and 2010. “It is a pact of Brazilian society against hunger,” defended the senator Marcelo Castroco-author of the project and Dilma Rousseff’s former health minister.
Hunger affects 33.1 million of the 215 million Brazilians, according to the Brazilian Network for Research on Food Sovereignty and Security. Even six out of ten Brazilians live with some level of food insecurity as a consequence of its economic reality. Some 20 million families receive this subsidy of 600 reais, which was to be reduced by 33% starting in January.
mixed opinions
In the vote, Senator Randolph Rodrigues, Lula’s faithful squire, defended this “fiscal margin” to end hunger, rebuild other social programs and “rebuild the country that was destroyed in the last four years.” Rodrigues also celebrated the victory on his social networks. “The PEC to combat hunger was APPROVED in the Senate! An important victory for us and face the chaos implanted in Brazil. Now the text goes to the Chamber of Deputies. I have faith that we will make it and the brazilian will go to sleep knowing that there will be food on the table!” the senator tweeted.
For his part, far-right senator Flavio Bolsonaro –son of President Jair Bolsonaro – warned that “the text generates uncertainty and will provoke a investor flight and more inflationwhich will lead to an abrupt increase in interest rates, today at 13.75 percent per year”.
Coinciding with Bolsonaro Jr., Marcos Rogerio, from the Liberal Party of outgoing President Bolsonaro, assured that the text represents a “blank check” for the transitional government. In his social networks, the senator specified that he is not against the Auxilio Brasil program, but rather that he is against those who are included in the project. “The proposal promotes the spree with public money, in addition to revoking the spending ceiling. It is a blank check for the PT government to spend as it wants, without due control,” he tweeted.
A proposal that gave fight
The text, which represented Lula’s first challenge to achieve governability when he assumes the presidency on January 1, was the subject of tough negotiations in the fragmented Congress.
The original amount was lowered this Tuesday by the Constitution and Justice Commission of the Upper House, which cut by 30 billion reais, equivalent to 5,770 million dollars, 17 percent less than what was raised by Lula’s allies. Also limited its validity to two years, 2023 and 2024, compared to the four demanded by the president-elect’s transition team. The parliamentary base of the Bolsonaro government tried this Thursday, without success, to reduce the scope of the proposal again.
The markets, for their part, were attentive to the debates due to fears of an excessive increase in public spending during the Lula government. The approved text provides that the incoming government sends a new fiscal rule project by August 31 of next year.