Cut to Super Government Salaries Would Provide only R$ 1 Billion to New Social Program

Measure being studied by Guedes and Congress, but faces strong lobby of civil servants


A congressional proposal endorsed by Minister Paulo Guedes (Economy) to cut wages above the ceiling for civil servants (R$ 39.3 thousand) will not be enough to finance a significant expansion of Bolsa Família.

In Congress, the move advocated by government officials and leaders faces the strong lobby of servants, especially from the judiciary.

In 2015, the government of Dilma Rousseff (PT) presented a similar project, which would reduce expenses for the Union by R$ 1 billion per year.

To finance the Citizen Income, a program to replace Bolsa Família, the team of President Jair Bolsonaro (without a party), seeks around R$ 20 billion.

Paulo Guedes (Foto: Pedro Ladeira/Folhapress, PODER) - Folhapress

With this amount, the idea is to expand coverage to families in the line of poverty and extreme poverty and increase the value of the monthly benefit.

Although with political and moralizing weight, the project to cut “super" salaries, debated by government and congressmen, will have a low impact on public accounts. The effect is greatest in states and municipalities.

The government faces difficulties in overcoming obstacles to the expansion of Bolsa Família because of the spending ceiling. The rule prevents expenditure growth above inflation.

For 2021, the government expanded the Bolsa Família budget compared to previous years, but it is still limited. It is estimated to serve 15.2 million families with R$ 34.9 billion.

Translated by Kiratiana Freelon

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