President Jair Bolsonaro (PSL) and Minister Paulo Guedes (Economy) sent to the Senate a package that proposes the most extensive restructuring of the Brazilian state in decades, according to economists.
Three PECs (proposals to amend the Constitution) were delivered. One of them foresees a reduction of up to 25% of the workload and salary of Union, state, or municipal employees if they enter a fiscal emergency.
In this scenario, readjustments, job creation, and public tenders would be slashed.
Guedes estimates to save R$ 50 billion (US$ 12 billion) over ten years, including the reduction of tax benefits.
In the PEC of the federative pact, R$ 400 billion (US$ 100 billion) would be transferred from the Union to states and municipalities in 15 years. The proposal also cuts from 40% to 14% the portion of FAT (Worker Support Fund) for BNDES.
The package will likely encounter resistance in Congress. To pass a PEC requires 49 of the 81 senators in two shifts. In the House, also in two sessions, 308 of the 513 deputies are needed.
Translated by Kiratiana Freelon