House approves PEC government spending in the first round

The proposal was approved by a 366 votes to 111 and two abstentions.
11/10/2016 08h58 - Updated 11/10/2016 16h11
Photo: reproduction

The House plenary approved last night (10), by 366 votes to 111 and two abstentions, the Proposed Amendment to the Constitution (PEC) 241/16, fixing a ceiling for public spending by 20 years. The text was approved in the first round and must undergo another vote in plenary. lack also vote the highlights of the PEC.

To be approved, PEC needed, no minimum, 308 votes. The government had announced that he was about 350 votes to approve the proposal, considered by the Executive as essential to promote the control of public spending and rebalance accounts.

The PEC creates a ceiling federal primary expenditures to be readjusted by the National Index of Consumer Prices Broad (HICP), setting limits for individual Executuivo powers, Judicial and legislative.

In practical terms, the proposed new tax regime aims to limit, during 20 years, the growth rate of the EU spending to the inflation rate. Who fail to comply with the limit will be penalized and will be unable to hire staff, make tender, grant adjustment to servers, create jobs or function that implies spending increase and change the career structure involving expense increase

Attempted obstruction

Throughout the duration of the work, the opposition worked to obstruct the work to be against limiting federal spending to inflation, arguing that this is not the way to boost the economy. The opposition also argued that the proposal removes resources for health and education.

"There are people of the population is in favor of the PEC because you think it's cutting our spending, spending of Parliament, Executive and do not understand that it cuts the hospital money, Teacher pay ", said Network leader, Alessandro Molon (RJ).

The leader of the PT, Afonso Florence (BA), also criticized the proposal. “A PEC 241 It is the dismantling of all public policies, It is the dismantling of the social security system, do SUS, education public system at the top level ".

For Chico Alencar (PSOL-RJ), another problem, It is that the proposal was not discussed with the population. "The PEC was not a proposal made by an elected government and has not been discussed with the population. That project is an imposition for two decades a crunch. It has to be called cutting PEC investments ", said Rep.


During the vote, the governing coalition argued that the fiscal crisis was an "inheritance" of the PT governments. "The PT was spending cook full, It was spendthrift ", said Mr Duarte Nogueira (PSDB-SP). Deputy Luiz Carlos Hauly (PSDB-PR) He added that the PEC is "just the beginning of the reforms".

In the evaluation of the governing, the measure will contribute to the growth of the economy. "Who spends more than it collects you have to understand that there is a time when one must settle accounts. Now is the time setting ", Ronaldo said Benedet (PMDB-SC).

O Lider do PMDB, Mr Whale Rossi (SP), He rejected the opposition criticism and denied that the SGP removes resources for health and education. "Only health, We have R $ 10 billion more next year ", said. "Similarly, all resources for programs in education are guaranteed. We are committed to the floor and not the ceiling. These lies will not prosper ".

The approved text, the cost of the two areas will no longer represent a fixed share of the Union's revenue from 2018, having only guaranteed the correction for inflation, the remaining costs. For 2017, exceptionally, health will be with 15% of net current income and education, 18% tax collection.

Ministers vow

Three ministers were dismissed by the President of the Republic, Michel Temer, to vote in favor of the matter. Initially, Temer exonerated Bruno Araújo ministers (PSDB-PE), the Ministry of Cities, and Fernando Coelho Filho (PSB-PE), the Ministry of Mines and Energy. The decision was published in the regular edition of the Official Gazette today.

In the late afternoon, it was the turn of the Minister of Tourism, Marx Beltrao, be removed. The dismissal was published in special edition of the Official Gazette.

Source: Agency Brazil

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