Subscribers to the Bolsa Família New Auxílio Brasil will have access to the payment of a new bonus: understand that the government wants to link the payment of “bonus“to me Beneficiaries of the new Bolsa Família in a nascent income The State-owned privatization and other assets of the executive branch.
The model to be proposed foresees the payment of additional resources to the beneficiaries, which will vary according to the amounts collected with privatization and net profits (profits distributed by companies minus resources spent on state-owned deficit companies).
The payment of such sums shall be outside the expenditure ceiling, a rule which imposes a limit on the expenditures of the Union, as it shall not have a recurring character and will depend upon the size of this fund in the future.
The model the government is discussing foresees that 20% of proceeds from privatization or sale of assets will be used to reward the beneficiaries of the new Bolsa Família, 20% to pay an advance premium and the remaining 60% to reduce public debt.
It is already certain that there are two privatizations associated with the revenues of this fund: sales of Eletrobras and Correios. The fund will also include real estate sales and dividends from profitable state-owned enterprises.
The government believes that the fund will be a way to encourage and overcome resistance to privatization in Congress and the judiciary. The assessment is that it will be difficult to vote against the state-owned sale knowing that the value will be used for the most vulnerable.
Executive sources claim that since these are a non-recurring expense linked to non-recurring income, there will be no problem with paying the amounts off the ceiling. Within the government, the fund’s inclusion in this position is seen as an opportunity to accelerate privatization and reduce the size of the state.
PEC, forecast by GLOBO on Monday, embodies the idea of Economy Minister Paulo Guedes to create what he calls the “Brazil Fund”. This fund, which will not bear that name, will be provided with the sale of federal assets and the privatization of state-owned enterprises, dividends and income from franchises.
The new social program will be proposed to Congress, perhaps later this week, but still without values. The average maturity amount should increase from R$192 to R$300 per month. The number of beneficiaries will also increase from 14 million to 17 million.
The value of R$400, which was proposed by the President, should not be realized. The total cost to benefit next year is expected to be R$56 billion (today there are about R$30 billion annually). The bonus will therefore be in addition to these monthly amounts.
To give a sign to the Jair Bolsonaro government and to separate the interest of the Labor governments, the new Bolsa Família will be called “Brazil AidIt is a way of referring to emergency aid, paid for due to the Covid-19 pandemic. The new Bolsa Família is seen as central to the Bolsonaro campaign in 2022.
The proposal to pay the “bonus” to Bolsa Família will be included in the PEC that will allow the payment of court rulings. Without the PEC, the government will need to pay about R$90 billion in 2022 due to court rulings that can no longer appeal. This figure represents a 62% increase over the projected value for this year (54.7 billion R$) which was already growing above inflation.
Paying the court orders will take up all the space needed for the Bolsa Família and will also reduce the amount of other non-compulsory expenses, such as investments. Therefore, the government will propose to the Public Electricity Corporation to repay its legal debts within nine years (in addition to a 15% down payment).
missile against meteor
The Minister of Economy, Paulo Guedes, came to classify the precursor’s growth as a “meteor” and the PEC as a “rocket” to contain the problem.
“superprecatórios”, judicial debts of more than 66 million R$, will be paid in instalments. The text also established a special system for repaying judicial debts until 2029.
The KPC sets total spending on court orders at 2.6% of net current revenue (available for spending) accumulated 12 months prior to filing for court orders. It is a way of determining the amount that can be paid in a year. Under this rule, court orders of less than R$455,000 will be paid in cash only.
The idea behind the proposal is to bring the value of court orders closer to this year’s level of R$54.7 billion. The area to be created next year is R$40 billion. Since processing of the PEC in Congress is slow, the government must propose the 2021 budget on August 31 without considering the effects of the measure.
The PEC will also provide mechanisms for the government to keep accounts of rulings that benefit states, municipalities, and businesses.
In the case of states and municipalities, the proposal will allow the fulfillment of obligations. For example, a court order benefiting the state could be used to offset its debts to the federal government.
As such, neither party will need to disburse the funds. In other words, if the state had an advance amount of R$5 billion, it could use that amount to pay off debts with the federal government.
Government officials said some court decisions had one-off characteristics and turned into billions of dollars in debt.
An example is the discussion on the Fund for the Preservation, Development and Valorization of Primary Education in the States (Fundef), a skeleton belonging to the government of Fernando Henrique Cardoso that has just been identified.
Expenses related to this liability increased by R$17 billion to a total court-ordered account in 2022. Source: Extra Globo
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