Ignoring readjustment for civil servants, government revises budget and provides Brazil Aid of R$415.00

The 2022 budget already seems to suffer a hole in anticipation. At least, that is what the general office that the Minister of Economy, Mr. Paulo Guedes forwarded it to Deputy Hugo Leal (PSD-RJ), who is responsible for leading the report on next year’s budget.

The report therefore contains a new review of future expenses due to the current economic scenario, as well as shortly after the enactment of Constitutional Amendment 113/2021, whose discussion limits the payment of precatories and changes the way of calculating the spending ceiling.

Thus, expenses with the Auxílio Brasil program alone should reach a new R$ 90.552 billion in 2022. Before, the 2022 budget bill raised an amount of R$ 35.926 billion. As a result, the difference is R$54.6 billion needed to complement the current version of the plan.

According to Agência Câmara de Notícias, the readjustments of the 2022 Budget will change mandatory expenses and agendas on health and education, among others. The new estimates, as explained by Paulo Guedes, are in line with the aim of meeting the policies for the most vulnerable calls.

The issue of payments to civil servants, however, is not on the agenda. Understand more below.

What this article covers:

Budget readjustments for 2022: what predictions

What was proposed as an amendment to the budget bill for 2022 had to be sent by official letter, instead of a presidential message, as the Joint Budget Commission approved Hugo Leal’s preliminaries, this Monday (12/06).

Now, if the Chamber of Deputies also approves the general letter next Tuesday (12/14), the readjustments above the PEC for Precatories will gain fiscal space of R$ 106 billion, provided that R$ 62.2 billion result from the correction of the ceiling, while R$ 43.8 billion is the limit on the payment of precatories.

The government takes into account that the INPC, an indicator of what the consumer will have to spend more, will end the year at 10%. In this sense, the minimum wage goes to R$ 1,210 in 2022.

In addition, the Ministry of Economy requests an additional R$ 7.5 billion to pay for public health, divided into R$ 4.5 billion to buy more vaccines, and R$ 1.9 billion for Auxílio Gás.

That is, the readjustment to apply the benefit created by Jair Bolsonaro considers 50% of the value of the cylinder, which is R$ 56, destined, then, to 5.5 million families. In this account, there is still BRL 558,000 for the Inclusion Aid that includes People with Disabilities.

On the other hand, the readjustment for civil servants was left out of the reestimate, although it is a commitment defended by Bolsonaro. This Wednesday (12/08) the president touched on the subject again, but the readjustment would be in the range of 1%, with no space to meet all categories, with the exception of federal servants.

How does the 2022 budget readjustment work in Brazil Aid?

According to the government, the readjustment of the 2022 budget includes the priority of the Brazil Aid, but will need a complement of R$ 54.6 billion.

The payment of the benefit would be in the average amount of R$ 415 destined to eligible families and will start to function according to the change in the levels of poverty and extreme poverty 一from R$ 105 to R$ 210 per person 一 foreseen in the Provisional Measure 1061/21🇧🇷

Budget 2022: Mandatory government spending

The 2022 Budget also wants to set aside BRL 39 billion for mandatory government expenses, as we are witnessing the acceleration of inflation.

Therefore, spending on social security benefits (R$ 29.2 billion more), the Continued Cash Benefit (BPC) and Lifetime Monthly Income (RMV) enters here, with an increase of R$ 4.6 billion. Meanwhile, the Abono and Seguro Desemprego will have R$ 2.2 billion more.

At first glance, the readjustments in the 2022 Budget amount to BRL 103.4 billion. However, these do not include the R$ 5.3 billion to be disbursed by the government after the payroll exemption agenda is extended.

Or even the transfers incorporated by Congress into the 2022 budget to meet the FNDCT (National Fund for Scientific and Technological Development).

So, dear reader, we can say that the experts are right in saying that the fiscal issue is tight for next year, with no room to add additional amounts to the Economy.

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