Government and Allies Will Vote on Social Security Reform this Year

11/10/2017 - 11h13

According to Finance Minister, Henrique Meirelles, the government and its allies reached an agreement to vote on the social security reform this year, at a meeting held on Thursday (9) with House Speaker, Rodrigo Maia, and main party leaders.

Meirelles stressed, once again, that the consensus between government and congressmen is that at least three points of the reform will be maintained: minimum retirement age, transition period, and consolidation of public and private regime rules.

When asked whether the new text of the reform could include withdrawal of funds from taxes PIS and Cofins from the DRU (Detachment of Union Revenue), Meirelles said "this is an interesting debate."

	Ueslei Marcelino/Reuters
	Brazilian Finance Minister Henrique Meirelles gestures during a news conference in Brasilia, Brazil September 5, 2017. REUTERS/Ueslei Marcelino

The DRU allows the government to freely spend a portion of taxes collected. By means of PIS and Cofins withdrawals from the DRU, therefore, this would not be possible, and taxes could be allocated to social security.

Meirelles also stated that the activities to approve MPs (Provisional Measures) which establish, among other things, postponement of adjustments for public servants and taxation of high-income funds, are "progressing as expected."

Such measures are important for the government to obtain all approvals required to increase its cash next year. According to Meirelles, the purpose of those measures is to correct distortions. "It is merely a matter of isonomy, that is, of equality."

Translated by ANA BEATRIZ DEMARIA

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