Arthur Lira defends de-indexing 100% from the Budget Spending on health/education remains free. There would be no more mandatory funding. Idea is defended by Paulo Guedes

Representative Arthur Lira (PP-AL) assumed the presidency of the Chamber in February; in an interview, he said that a “very good” relationship with President Jair Bolsonaro should accelerate reform.

The president of the Chamber of Deputies, Arthur Lira (PP-AL), defended completely de-indexing the federal Budget, removing constitutional requirements. This way, there would no longer be mandatory minimum spending on health, education, among others.

In an interview with the newspaper O Globo, published this Sunday (21.Feb.2021), the president of the Chamber argued that, the way it is done nowadays, the decision-making power of politicians who hold office is reduced. Lira cites, to illustrate her reasoning, the fact that approximately 90% of the Budget was committed to these mandatory expenses.

“I want to unlink the Budget. Today, you have a Budget that includes 25% for education, 30% for health, “x” for penitentiaries, all stamped. So, out of 100% of the Budget, 96% you cannot change”, he highlighted.

The procedures to redirect these funds to other areas that are most in need are long. And the money that arrives in cash needs to be spent within the stipulated period.

“Today governors and mayors are forced to spend money, throwing money away, to meet the constitutional minimum. In healthcare, there are too many resources. The health problem is management”, he argued.

For Lira, the ideal model is for the Legislature to determine how much and how the government will spend. And that the Executive is in charge of applying the resources.

“Where are the biggest democracies strong? Where the Budget belongs to the Legislature. Who will execute it is the Executive. But who says where it will execute, how much it will execute and in what area is the Legislature”, he highlighted.
Asked whether complete decoupling would not result in a drop in Investments in areas considered priority, such as health and education, Lira denied. For the deputy, this will give voters more responsibility, as they will have to vote for councilors, state deputies, federal deputies and senators who defend Investments in these sectors.
“The population has to choose the deputy: 'Ah, I want there to be 40% in the Budget for education'. So the population will vote for deputies who defend Education”, he illustrated.

The idea is also defended by the Minister of Economy, Paulo Guedes. In recent weeks, Guedes has had intense contact with Lira and the president of the Senate, Rodrigo Pacheco (DEM-MG). The 3 demonstrated a similar understanding that liberal reforms need to be carried out.

RESISTANCE
There is, however, no Guarantee that it is possible to approve the complete de-indexation of the Budget. The tendency is for resistance to arise in Congress.

Today cities, States and the Union have to invest their revenues in specific areas by constitutional determination, something that was included in the 1988 Charter. For example, in the case of health, the percentage of the Budget that must be spent is 15% of federal revenue. In the case of education, 18%.

The constitutional minimum for health is calculated based on a percentage of the Current Revenue liquid. The minimum for education is set based on a share of net transfer income. States and municipalities also have a fixed budget in these areas.

SCHEDULE
In the interview, Arthur Lira reinforced that he wants to approve the constitutional amendments to the federative and emergency pact in the next 30 or 40 days. These measures will make room for new emergency aid, which Planalto wants to start paying in March.

“I am optimistic by nature. All reforms have to be approved in 2021. My calendar is as follows: we vote on the Emergency and the Federative Pact in the next 30, 40 days, both in the Senate and in the Chamber. The Administrative, next week I hope to install the committees. The Tax Department, the arrangement we made was now, between the 25th and 28th, to read the tax report Commission mixed”, declared the president of the Chamber.

Lira also said that the current command of the Legislature has a “very good” relationship with President Jair Bolsonaro. According to him, this favors the approval of reforms in the next 2 years.

“This 3rd year [of office] is, therefore, a very good wine harvest. The president of the Senate, who has a very good relationship with the Chamber, who has a very good relationship with the President of the Republic, who is building a very good relationship with the Judiciary. What is President Bolsonaro's 2021 harvest? Is this a guy who is refusing the vaccine? Is he a guy who is undemocratic? Are you a guy who thought about holding the Central Bank? Did not say.

Source: Power 360°.