1. Home
  2. / Construction
  3. / New fiscal framework project proposes protection of Minha Casa Minha Vida and unfinished works against budget cuts
AISP-GEDOC DF reading time 3 min read

New fiscal framework project proposes protection of Minha Casa Minha Vida and unfinished works against budget cuts

Written by Bruno Teles
Published 17/05/2023 às 14:36
My home, my life
photo/disclosure

The Minha Casa Minha Vida (MCMV) program and the unfinished works will have greater protection in relation to budget cuts, said Claudio Cajado (PP-BA), rapporteur of the project for the new fiscal framework (PLP 93/23).

The substitute presented last Tuesday (16) establishes that 70% of the primary surplus that exceeds the target set two years earlier will be directed to these two areas, provided that it does not exceed 0,25% of the Gross Domestic Product (GDP), which represents around BRL 25 billion in the case of the forecast for 2023.

Resources will be prioritized for works that are unfinished or in progress, receiving a minimum amount corresponding to the amount allocated in the 2023 budget law, which is approximately R$ 78 billion, updated according to the inflation measured by the IPCA.

In the midst of the covid-19 pandemic, more than a million people in Brazil have been evicted or threatened with eviction. The Minister of Cities, Jader Barbalho Filho, announced at the beginning of January this year the return of the MCMV and stated that the government has secured R$ 10 billion for investments in the area in 2023.

During the ceremony, the minister reinforced that Brazil has a housing deficit of 5,9 million homes and that the MCMV, created by the Lula government in 2009, had contracted 4,2 million homes by 2016.

The MCMV is a federal housing program whose objective is the construction, renovation and acquisition of properties for low-income families. In 2020, former president Jair Bolsonaro even replaced the name of the program with Casa Verde e Amarela, but maintained its essence.

Parliamentarian Claudio Cajado reinforced that the protection of the MCMV and the unfinished works is an important and urgent measure, due to the need for economic recovery and because it is a public policy that benefits millions of Brazilians.

Cajado pointed out that the measure will not harm the country's fiscal health, since the allocation of the primary surplus will be within the limits established by the Fiscal Responsibility Law.

The deputy also pointed out that the changes to the Annex of Fiscal Targets that are integrated into the Bill of Budgetary Guidelines (LDO) must be present in the substitute.

As annual goals for the next three years, the medium-term fiscal framework with projections of fiscal aggregates, the expected effect of meeting the primary balance targets on the public debt trajectory over a ten-year period, the tolerance intervals for the annual targets for the primary balance and the limits and budgetary parameters of all powers and public bodies are examples of the changes.

The main objective of fiscal policy is to ensure the sustainability of the public debt. This is evaluated by the proportion between the General Government Gross Debt (DBGG) and the Gross Domestic Product (GDP). DBGG is calculated by the Central Bank and encompasses the total amount of federal, state and municipal government debts that incur interest payments.

The MCMV is a important program for the Brazilian population, especially for low-income families who have difficulty finding adequate housing for their needs. Therefore, its protection against budget cuts is a necessary measure that must guarantee the continuity of the Program. Brazil needs to invest in public policies of this nature so that the most vulnerable population has access to minimum conditions for a dignified life.

Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 2.300 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

Share across apps