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The federal government is presenting a fiscal package with significant changes to the minimum wage, adjustments to social benefits such as Bolsa Família, and cuts to public sector salaries. The proposal seeks to save billions in order to meet the fiscal framework targets, but faces political and social resistance that raises debate about the impacts on the most vulnerable population.
The federal government is about to unveil one of the most controversial fiscal packages of the last decade. The proposal, which has been adjusted in intense meetings at the Planalto Palace, promises to bring profound changes to the public budget, with impacts that should have repercussions in various spheres of society.
While final details are being kept under wraps until congressional leaders give their approval, controversial measures involving social programs, wages and employee benefits are widely expected to be at the heart of the plan.
With an adjustment that seeks to balance public accounts without compromising governability, President Luiz Inácio Lula da Silva and his team face a major challenge: convincing Congress and society of the need for these cuts.
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The promise is that the measures will be sufficient to generate a economy between R$25 billion and R$30 billion by 2025, rising to BRL 40 billion in 2026.But at what cost?
Package details: what is being proposed?
The heart of the fiscal package includes measures ranging from changes to the criteria for readjusting the minimum wage until adjustments in the Continuous Cash Benefit (BPC) and salary bonus (PIS/Pasep).
One of the most controversial changes is the limitation of the real gain of the minimum wage, which could vary between 0,6% and 2,5% above inflation, according to the growth in revenue.
In the case of BPC, the idea is to restrict the benefit to people with severe disabilities or elderly people in extreme vulnerability, ensuring that only those who cannot support themselves, even with family support, receive the aid.
To avoid legal proceedings that expand access to the program, the government intends to propose changes to the Constitution
Furthermore, the fine-tooth comb in the Bolsa Família aims to prevent fraud and direct resources exclusively to those who truly meet the criteria.
Despite this, Minister Wellington Dias assured that the cuts will not affect current beneficiaries, reaffirming that the focus will be on improvements in management.
Another key point is the fight against excessive salaries in the public sector. A supplementary bill is being prepared to establish stricter salary caps, but its approval depends on Congress' approval.
Finance Minister Fernando Haddad highlighted that the project is part of a collective effort to adjust public accounts without penalizing the most vulnerable.
Impacts on unemployment insurance and FGTS
Although the government has ruled out changes to the FGTS and cuts in the unemployment insurance, some adjustments were discussed at the meetings.
An initial proposal envisaged using part of the 40% FGTS fine on dismissals to pay for unemployment insurance, but the idea was abandoned due to strong resistance from union leaders and Minister Luiz Marinho.
Now at unemployment insurance, some changes were suggested, such as restricting the benefit to workers who receive up to two minimum wages.
However, trade unions pressed to avoid any changes that would compromise already acquired rights.
Resistance and political articulation
The presentation of the package to Congressional leaders — including José Guimarães (PT-CE), Randolfe Rodrigues (PT-AP) and Otto Alencar (PSD-BA) — marks the beginning of a political battle to ensure the approval of the measures.
Behind the scenes, the government's strategy is to align the support of the presidents of the Chamber, Arthur Lira, and the Senate, Rodrigo Pacheco, before formalizing the public announcement.
Meanwhile, sectors of society and unions are concerned about the impact of the changes, especially in the areas of education and health.
Ministers from these departments, such as Camilo Santana and Nísia Trindade, have already expressed opposition to cuts in constitutional minimum wages that could compromise essential investments, such as Fundeb and transfers to the SUS.
Economic context: the weight of the fiscal framework
According to portal THE GLOBE, the package of cuts is a direct consequence of the new fiscal framework, which limits the growth of public spending to revenue performance.
According to Haddad, the proposal is a necessary alternative to avoid drastic cuts in discretionary investments, which could paralyze the government. He argues that, without adjustments, compliance with fiscal rules will be unfeasible from 2025 onwards.
Solution or dilemma?
The promise of fiscal balance comes with political and social challenges. The government will need to convince Congress and society that the cuts are essential and do not compromise the rights of Brazilians.
With the economy recovering and growing demands for social investments, the fiscal package will be a litmus test for the Lula administration.
What do you think about the proposed measures? Are they the best solution for fiscal balance or do they burden the population too much? Leave your opinion in the comments!
This government is a ****, the worst in the entire history of Brazil. The people have never been as enslaved to the system as they are today. We don't even have sanitation **** that this evil left was 100% against.