A 5% adjustment to the server could raise the budget size to R$16.2 billion, says secretary

A 5% adjustment to the server could raise the budget size to R.2 billion, says secretary | Economie

A possible 5% adjustment for federal civil servants could raise the overall ban for the 2022 budget to R$16.2 billion, the Special Minister for Treasury and Budget said Friday (20). The Ministry of EconomyEsteves Colnago.

The government is considering a 5% written adjustment for federal public servants. A decision on the increases will be made at the end of June. Deadline in the Financial Responsibility Act (LRF). President Jair Bolsonaro (PL) said Thursday (19) that the government has made an effort to find space in the budget and think about public servants.

So far, with Freeze announced on Friday (20)The total blockade imposed on the budget of the executive authority will reach 9.9 billion Brazilian riyals until the end of this month. This block due to the overestimation of mandatory expenses. The objective is to comply with the maximum expenditure rule, according to which the total expenditure subject to maximum inflation cannot exceed.

The overall increase of 5% is estimated at an estimated cost of R$6.3 billion to the executive branch, while the government will spend another R$1.7 billion on job restructuring, money already saved in the budget.

Thus, if the government grants readjustment and job restructuring, the new expenditures will be R$6.3 billion. If the decision is only about linear adjustment, without restructuring, the new necessary block will be R$ 4.6 billion.

According to Colnago, the blockade must be implemented at discretionary expenditures (funding of the public apparatus and investment by ministries) or in parliamentary amendments.

In response to a question whether the blockade could paralyze some basic activities, the minister said that the economic team “will seek to preserve ministries that are facing a lot of budget difficulties”, including himself. The Ministry of Economy.

Colnago also mentions that, historically, there are opportunities to release resources in the second semester, as it turns out that there will not be enough time to implement some of the projects planned by the ministries.

Congress approved the 2022 budget this Tuesday (21)

Colnago also clarified Friday that the server readjustment needs to be passed into law by the president by June, due to the limitations of the Financial Responsibility Act.

The Minister also mentioned that once the hammer for amendment is struck, it will be necessary to send a bill to Congress providing for the increase. This project needs to be approved and sanctioned by June.

Several categories of civil servants pressured the government to make adjustments after freezing the categories’ salaries in the past two years.