Senator Fernando Bezerra Coelho (MDB-PE) presented this Tuesday (27) details of his report for PEC (Proposed Amendment to the Constitution) nº 16, which increases benefits and creates new ones this year, in which President Jair Bolsonaro (PL) seeks re-election. Called behind the scenes as a “package of kindness”, as it precedes the election period, the proposal foresees, until the end of 2022, an increase in Auxílio Brasil (formerly Bolsa Família) from R$ 400 to R$ 600 and the bimonthly gas allowance , from R$53 to R$120, in addition to the creation of a truck driver allowance of R$1,000. In the case of Auxílio Brasil, the cost will be R$ 26 billion and, according to Bezerra, will allow the program’s current queue to be zeroed out this year.
The report also includes resources for free public transport for the elderly and subsidies for ethanol. In addition, there is an article determining the state of emergency in Brazil, due to the rise in fuel prices. “Effects of recognition [do estado de emergência] will be limited to the benefits of the proposal. We won’t leave the door open.”
Originally, PEC No. 16 was intended to compensate states that agreed to zero the ICMS (Tax on Circulation of Goods and Services) levied on diesel and gas by the end of the year. The Union calculated compensation of up to R$ 29.6 billion to states that had zeroed the tax.
As the success of the measure would depend on the adhesion of the governors, the Bolsonaro government opted for a proposal that would more quickly impact specific strata of the population. There was also the fear of questioning in the courts about the reduction of ICMS.
Thus, compensation was left out. In exchange, the PEC will include the following measures, which are valid until the end of 2022:
Readjustment of R$ 20) in Auxílio Brasil, which will go from the floor of R$ 400 to R$ 600. The estimated cost is R$ 26 billion; Readjustment of the gas allowance to R$ 120 (equivalent to a cylinder) for each two months. The cost is R$ 1.5 billion; Launch of the truck driver allowance of R$ 1,000, to be paid monthly to around 900,000 drivers. The cost is R$ 5.4 billion; Subsidy for free transportation of people over 65 years old, with an impact of R$ 2.5 billion; Subsidy for the production of ethanol, at a cost of R$ 3.8 billion.