What changes with the Precatories PEC?

The PEC on Precatories was approved on Tuesday (11/09) by the Chamber of Deputies and will go on to vote in the Senate. If approved, it will allow the postponement or installment of debts that the Union, States or Municipalities have with individuals or legal entities.

The justification for this proposal is to make Auxílio Brasil feasible and make more resources available for the 2022 election campaigns.

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What changes with the Precatories PEC?

First of all, to capture the change that this proposal aims to bring about, we must know what precatories are.

The Municipalities, States or even the Union have debts with some people or companies. This debt may result from agreements or legal decisions. Most of these people are civil servants and rely on the money from these precatorios – a value that reaches almost R$90 billion for 2022.

It is precisely in this budget that the “PEC do Calote” (a nickname it gained on social media) will operate. It will legally allow these amounts to be postponed or paid in installments. This implies the payment of a down payment of 15% of the debt in cash and the remaining amount will be paid in annual installments.

In addition, the proposal will correct the values ​​of these debts by the Selic rate and change the method of calculating the Spending Ceiling. This process will open space for the State to spend more than it can and seriously harm the country's economy, which is already fragile.

In addition, the estimate is that the Union's debt will only increase even more. According to a calculation made by the OAB Court Order Commission, the debt reaches around R$1.5 trillion by 2036, if payments are postponed.

And how does this help Auxilio Brasil?

At first, Auxílio Brasil is an income distribution program that replaces Bolsa Família. According to the Ministry of Citizenship, it will cover – in the first month alone – more than 14.5 million families. This totals more than R$3.25 billion divided into monthly installments of R$224.41 per family.

Bearing this in mind, professor of Constitutional Law Antônio Carlos Freitas Júnior points out that the proposal releases more resources than necessary for the program, in addition to emphasizing that other measures could be taken to meet the needs of the Brazil Aid, such as rethinking the public budget as a all.

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