License-to-spend bill gets support for formal discussion in the Senate

Senator Marcelo Castro is the 2023 budget's rapporteur. Photo: Jefferson Rudy/SF

A constitutional amendment bill granting the next government authorization to spend on social programs outside of federal spending rules cleared the first step on Tuesday. The bill obtained the minimum number of signatures to be formally discussed in the Senate.

Constitutional amendment proposals must be signed by one-third of senators to begin their congressional path. The proposal reached 28 signatures, one more than the minimum requirement.

The bill is authored by Senator Marcelo Castro of Piauí, who is also the rapporteur of the 2023 budget. It aims at increasing the monthly payments of the government’s flagship social program from BRL 400 to BRL 600, a core electoral promise made by President-elect Luiz Inácio Lula da Silva on the campaign trail.

The draft also allows the government to jack up investment if tax revenue exceeds expectations. In October, federal revenue went up 7.9 percent compared to the same month last year, to a total of BRL 205.4 billion (USD 38.8 billion).

In a statement to the press, Mr. Castro said that, without the amendment, the incoming administration would have no funds to purchase vaccines, provide school lunches, and fund housing programs, road maintenance, and other government services.

He added that, now that enough signatures had been obtained, “we will continue negotiations to approve the proposal as soon as possible.”

In its current form, the bill would be valid for the whole four years of the next administration (2023-2026), but the text can be modified by legislators during discussions. If approved in the Senate, it still needs to be discussed and voted on by the House. Constitutional amendments are not subject to a presidential veto.

The transition team is rushing to approve the bill by December 22, before Congress goes into recess. Lula is to take office on January 1, 2023.