US$32 billion spending bill is approved by the Brazilian Senate plenary
The Brazilian Senate plenary approved, on Wednesday, Dec. 7, the Proposal of Amendment to the Constitution (Transition PEC) regarding higher spending.
There were 64 votes in favor and 16 against.
The text increases the spending cap by R$145 billion annually for two years and opens a margin of almost R$24 billion, within the fiscal rules, for public investment.
The total fiscal impact will be just over R$ 168 (US$32) billion. Of this amount, R$70 billion will be allocated to Auxílio Brasil, the future Bolsa Família, which provides for the payment of R$600 per month to beneficiaries, plus R$150 per child under 6 years of age.
The approved proposal differs from what President-elect Luiz Inácio Lula da Silva (PT, progressive-globalist) team wanted.
The initial PEC provided R$175 billion for Auxílio Brasil alone, which would remain outside the spending cap for four years.
However, the total impact of the PEC was estimated at R$200 billion.
With the new text, the value of Brazil Aid alone was reduced by more than R$100 billion. And the total amount was reduced by R$ 50 billion.
On Tuesday, Dec. 6, the PEC was approved in the Senate’s Constitution, Justice and Citizenship Commission (CCJ).
Senator Alexandre Silveira (PSD-MG), the rapporteur of the proposal, was the one who presented the document.
The text was approved with a few changes.
The senators still need to analyze three amendments presented by the PL, Podemos, and PP. After the second round, the PEC goes to the House of Representatives.
The government leader in the Senate, Carlos Portinho (PL-RJ), voted against the proposal.
Check out the votes of some parties
- MDB voted yes;
- PSD voted yes;
- PL voted no;
- Podemos released its bench to vote as it wished;
- Progressives voted no;
- PSDB released the bench to vote as they wished;
- União Brasil voted yes;
- PDT voted yes;
- PTB voted yes;
- Pros voted yes;
- Citizenship voted yes;
- PSB voted yes;
- PSC voted yes;
- Republicans voted yes; and
- Rete voted yes.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.06%
173,714.08
-0.06%
66,615.43
+0.39%
10,886.14
-0.56%
3,199,934
+0.46%
2,298.34
+0.58%
57,220.16
—
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 173,714.08 | -0.06% | +28.14% | 173,825.27 | 174,505 | 173,285 | — |
| USD/BRL | 5.11 | +0.19% | -8.19% | 5.10 | 5.13 | 5.10 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| PETR4 | 40.90 | +2.53% | +29.97% | 39.89 | 41.11 | 40.41 | 32,096,300 |
| VALE3 | 72.94 | -0.05% | +34.33% | 72.98 | 73.12 | 72.10 | 13,456,000 |
| ITUB4 | 41.96 | -1.39% | +20.99% | 42.55 | 42.61 | 41.87 | 19,560,900 |
| BBDC4 | 18.29 | -0.65% | +14.10% | 18.41 | 18.48 | 18.21 | 55,066,000 |
| BBAS3 | 20.49 | -1.30% | -1.21% | 20.76 | 20.83 | 20.26 | 35,688,400 |
| B3SA3 | 15.20 | -1.23% | +10.63% | 15.39 | 15.37 | 15.17 | 48,828,300 |
| ABEV3 | 15.63 | +0.19% | +16.12% | 15.60 | 15.75 | 15.51 | 16,160,200 |
| WEGE3 | 43.63 | +0.32% | +3.66% | 43.49 | 44.02 | 43.15 | 8,200,700 |
| PRIO3 | 57.85 | +1.87% | +33.60% | 56.79 | 58.00 | 57.07 | 5,306,100 |
| SUZB3 | 41.93 | +0.55% | -16.97% | 41.70 | 42.62 | 41.40 | 8,204,800 |
| RENT3 | 38.23 | -1.62% | +2.33% | 38.86 | 38.80 | 37.87 | 5,880,900 |
| AZZA3 | 18.59 | +0.32% | -48.91% | 18.53 | 18.74 | 18.32 | 1,449,200 |
| CSNA3 | 5.05 | -0.98% | -36.16% | 5.10 | 5.11 | 5.00 | 7,618,200 |
| GGBR4 | 24.04 | +0.54% | +47.03% | 23.91 | 24.24 | 23.59 | 5,371,400 |
| ENEV3 | 25.68 | -1.04% | +86.63% | 25.95 | 26.18 | 25.66 | 12,337,200 |
Read More from The Rio Times