Savings reserve BRL 11.7 billion for server readjustment – 04/18/2022 – Market

The Ministry of Economy included a reserve of R$ 11.7 billion for the granting of salary readjustments to federal employees in the LDO (Budget Guidelines Law) project sent to Congress last Thursday (14).

The money can be used to fund the future impact of a general review of remunerations in 2022, or a readjustment given in the first year of the administration of the next president of the Republic.

as showed the Sheet On Wednesday (13), President Jair Bolsonaro (PL) decided to give a linear adjustment of 5% to all careers — including military personnel in the Armed Forces and members of the Judiciary and Legislature — as of July 1 this year.

In a press conference on Monday (18), however, the special secretary for the Treasury and Budget, Esteves Colnago, said that there was no official statement regarding any decision by the Planalto Palace.

“The 5% readjustment is just one of the proposals on the table. There was no decision taken in this regard. There is a set of proposals on the table”, stated Colnago.

“There is no communication that gives us the clarity that there was this decision,” he said.

The Planalto Palace has not officially commented on the matter, but the Sheet learned from the president’s assistants and members of the economic team that the adjustment was agreed in a series of meetings on Wednesday.

A first preliminary meeting took place between ministers Ciro Nogueira (Casa Civil) and Paulo Guedes (Economy) and the president of the Central Bank, Roberto Campos Neto. Then, the final decision took place at a meeting between Nogueira and Bolsonaro.

After the meetings, however, different entities representing public servants came forward to complain about the value offered. The association of Federal Police delegates said that granting 5% to the category instead of a career restructuring would be disloyalty.

In the interview, Colnago confirmed that a linear adjustment of 5% starting on July 1st for the entire Executive, including military members of the Armed Forces, would have an impact of R$ 6.3 billion in 2022. With this, the cost would reach R$ $12.6 billion per year as of 2023.

In practice, according to the secretary, the reserve of R$ 11.7 billion would have to be reinforced by another R$ 900 million to cover the impact.

For the other powers, the linear adjustment would cost approximately BRL 1.5 billion this year and around BRL 3 billion in 2023.

The government also included in the LDO proposal an authorization to increase the amounts of benefits paid to civil servants, such as food and pre-school assistance, but only when the amount is below the average per person in the Union – that is, considering all the powers.

In practice, the criterion leaves room for increases in the value of benefits only in the Executive Branch, since the Legislative and Judiciary pay values ​​well above those practiced.

The Executive currently pays a monthly meal allowance of R$458 to all active civil servants, except for those who are on leave for long-term training or assignment to international organizations.

The pre-school allowance, paid to active employees with children up to six years old, has a value of up to R$321 per month.

The values ​​had the last adjustment in 2016 and are well below what is paid by the other Powers.

In the Chamber of Deputies, civil servants receive BRL 982.29 in food allowance and BRL 798.42 in pre-school allowance, according to data from December 2021. In the Judiciary, these amounts are BRL 910.08 and BRL $719.62 respectively.

The government also included in the text of the PLDO the exclusion, from the calculation of the fiscal target, of payments of precatories made through the so-called meeting of accounts (when, for example, taxpayers who owe the Union are entitled to federal precatorios and receive payment by through the abatement of these debts).

The constitutional amendments that altered the precatories rules, approved last year, already provided that these amounts would be outside the spending ceiling. Now, the project also removes the amounts from the target.

Despite this, the Ministry of Economy states that the values ​​will continue to be recorded and presented as a primary result (although outside the calculation of the target).

The Executive proposed in the PLDO a fiscal target that authorizes a deficit of R$ 66 billion in 2023 for the central government (National Treasury, Social Security and Central Bank), as anticipated by Folha.