Transition team proposes exclusion of BRL 175 bi from spending ceiling

The transition team of the new government presented on Wednesday (Nov. 16), to the National Congress, the proposal to exclude BRL 175 billion from the spending ceiling rule for next year's budget, as a way to maintain the minimum value of BRL 600 for the Family Allowance (Bolsa Família), a welfare program, currently Brazil Aid (Auxílio Brasil), besides including an additional value of BRL 150 per child under 6 years old of each beneficiary.

The measure is one of the campaign commitments of President-elect Luiz Inácio Lula da Silva (Workers` Party - PT). The draft of the constitutional amendment proposal was delivered personally by the vice-President-elect and general coordinator of the transition team Geraldo Alckmin.

According to the proposal, the amount excluded from the rule that limits the growth of public spending would be used to fully fund the Family Allowance Program, which would remain outside the ceiling on a permanent basis. In this case, another BRL 105 billion would be released from next year's budget to be used in the recomposition of resources for programs such as Farmácia Popular – a program that provides free medication for the treatment of certain diseases, and the real increase in the minimum wage, also promised by the new government during the campaign.

According to the rapporteur of the Bicameral Budget Commission, Senator Marcelo Castro (Brazilian Democratic Movement – MDB from Piaui state), what the transition team presented is a proposal that still needs to be negotiated with party leaders to be approved.

As a constitutional amendment proposal, it needs the signature of at least 1/3 of the senators (27) to start the process in the House of Representatives.