Deputies Propose to “Self-Sacrifice” During the Crisis

RIO DE JANEIRO, BRAZIL – Faced with the spread of the novel coronavirus pandemic and its public health, social, political and economic impacts, there has been an increase in the demand from society for sacrifices by the political world.

In addition to investments in structure and equipment in the medical area, aid packages for the population and incentives for companies, there is a demand for members of the three Powers to make a contribution from their own pockets to tackle the disease.

A survey conducted by InfoMoney, based on the Chamber of Deputies system, found at least 22 proposals from legislators with direct impacts on their own activities, to help fight the novel coronavirus.

The texts are part of a list of 579 proposals related to the pandemic, submitted over the past 30 days. Twelve proposals were identified as dealing with salary reduction and allocation of budgetary resources from the parliamentary quota in the fight against the pandemic.

One of the projects provides an extraordinary contribution for legislators to help tackle the impact of the novel coronavirus pandemic. The text, authored by Deputy Pompeo de Mattos, stipulates that a 30 percent tax be levied on the monthly allowances earned by deputies holding federal office.

Another, signed by Deputy Boca Aberta, determines a 50 percent cut in the salaries of the President, federal and state legislators, senators, governors and city councilors. A third, by Vitor Lippi, establishes salary reduction bands for civil servants. The cuts are of ten percent for those earning between R$5,000 and R$10,000 and of 20 percent for higher amounts. Those below the lower limit would not suffer any change.

Ten proposals were found that allocate portions of the Quota for the Exercise of Parliamentary Activity to tackle the disease. The percentages mentioned in the projects vary from 30 to 70 percent. Last year, the resources used by deputies in this category totaled over R$191 million.

Next are proposals for the allocation of resources from the electoral fund to fight Covid-19. In all, nine proposals were found for this purpose, the majority of them motivated by the severity of the crisis and, in some cases, by the very likelihood of deferring this year’s municipal elections.

The initiative is advocated by the government’s own leader in Congress, Senator Eduardo Gomes, who is also favorable to discussing the deferral of elections to 2022, coinciding with general and state elections – which would lead to a controversial extension of the current mayors and city councilors’ terms.

“I find it very difficult for these municipal elections to work out this year. There are 57,000 city councilors, multiply it by at least ten candidates per seat, in a dire health crisis for this process to be considered. We have a chance of deferral or extension with a coinciding election that could shelter a more forceful political reform, so desired in the country,” he said in a live broadcast organized by XP Investments.

“It is something that we will face at a later moment, but that is what I anticipate, the election is affected this year,” he said. Gomes argues that, depending on the legislators’ opinion, using the resources of the electoral fund and those that would be earmarked for Electoral Courts to organize this year’s proceedings to counter the impact of Covid-19 is possible.

“It is an unprecedented crisis, which requires energetic and effective actions from the relevant authorities. To that end, it is beneficial to suggest that the Special Fund for Campaign Financing of the 2020 municipal elections, made up of public money, be invested in actions to tackle the crisis in public health and the economy. At this time of crisis, holding this amount earmarked for campaign financing is not appropriate, while the people are suffering the impact of the crisis which may even lead to the postponement of this year’s elections,” argues Deputy Léo Motta, in one of the proposals under discussion.

“It goes without saying that a matter of public disaster is of greater importance than partisan and electoral interests. And it would not be acceptable for political parties to hold on to over R$2 billion for electoral campaigns, in addition to resources from the electoral fund, while the population is dying undiagnosed,” adds Deputy Miguel Lombardi, author of another proposal on the subject.

The electoral fund totals R$2.035 billion and is intended to fund the campaigns of candidates for mayors and city councilors in municipalities, since corporate financing is banned under current legislation. The resources represent about 0.5 percent of what the federal government is believed to have already allocated to tackle the crisis – which leads many to say that, like the other measures, it would be a gesture with limited effects.

For critics, the initiative could disrupt the electoral process and would have little fiscal potential to contribute to addressing the pandemic. The debate has already begun in the legal arena even before legislation on the subject was produced.

Last Tuesday, April 7th, Judge Itagiba Catta Preta, of the 4th Federal Court of the Judiciary Section of the Federal District, granted an injunction blocking the resources of the electoral and party funds to be employed in the fight against the Covid-19 pandemic. The ruling was overturned on Wednesday, April 8th, by Judge Carlos Moreira Alves, President of the Federal Regional Court of the 1st Region, in response to an appeal filed by the Federal Senate.

A proposal authorizing national directories of political parties to donate resources from party and electoral funds for actions included in policies to face public health emergencies, public calamities or natural disasters also merits attention.

The text (PL 646/2020), signed by ten federal deputies from two parties, authorizes the party to return resources directly to the National Treasury or to the State, District or Municipal Health Funds. The donation of the resources has already appeared in court.

Judge Luis Felipe Solomon, of the Supreme Electoral Court, denied last Monday, April 6th, the granting of an injunction requested by the ‘Partido Novo’ (New Party) to allow the allocation of R$34 million, relating to portions of the party fund to which the party is entitled, in the fight against the Covid-19 pandemic. The ruling, however, was not on the merits. The judge held that no request for a provisional decision could be lodged with the Court. The matter will be discussed by the full TSE.

“War of narratives”

Rodrigo Maia, president of the Chamber of Deputies, says the government is free to use the Electoral Fund’s resources to fight the pandemic, but does not do so with the intention of maintaining a narrative to undermine parliament.

“The government can use (the resources), but democracy needs to be financed, only at this time it could use them. It doesn’t use them because it holds a narrative against Congress,” he said in a videoconference organized by Necton Investments.

Last Tuesday, April 7th, Maia announced a cut of R$150 million in expenses by the Chamber. The funds, which are the result of savings on airfare, hotel fees and overtime payments, for instance, are equivalent to 7.37 percent of the electoral fund and will be earmarked for government actions to tackle the disease.

Two weeks ago, the legislator even suggested that the three Powers should consider a reduction of up to 20 percent in the salaries of civil servants as a kind of symbolic gesture in the midst of the crisis. Considering the higher salaries, the deputy’s calculations suggested a monthly saving of R$3.6 billion.

Maia had been urging the government to submit its own proposal for administrative reform – pledged since November 2019 – before the onset of the novel coronavirus crisis.

Economy Minister Paulo Guedes, however, said he was not in favor of reducing the salaries of civil servants to provide resources for the crisis.

The stance buried any possibility of the action advocated by Maia and could still have side effects on government proposals unrelated to the pandemic, such as the Emergency CSPs and the Federative Pact, which change employment rules for civil servants.

Given this scenario, Maia has preferred to drop the discussion on initiatives to adjust public spending for the post-crisis period. In the case of administrative reform, however, he argues that submission of a proposal by the government and commitment from the three Powers is needed.

“When the situation calms down, it is obvious that the government will have to address administrative reform. And with everything organized in the short term, we will return to debating other reforms,” he said in a teleconference promoted last week by Bradesco BBI.

According to Maia, a number of Federal Supreme Court justices understand that only the appropriate governmental branch can submit a proposal for administrative reform affecting it.

“From the moment that the Economy Minister says that this is not an issue on his agenda, I believe this hinders the discussion somewhat. This discussion has to be conducted between the three Powers. Noting that the personnel expenses of Congress, of the two houses, is around R$5 billion, of the Judiciary it is R$25 billion, and R$870 billion of the Executive Branch,” he said in a teleconference promoted by Santander bank.

“We are ready for a discussion, now we can’t have a discussion in which only the Congress is involved, because from the fiscal perspective it is innocuous, it seems that the problem of Brazil lies within the Congress,” he concluded.

Source: Agência Câmara