[Brazil] - Brazil's Fiscal Package Faces Setback as Government Struggles to Secure Votes

INSUBCONTINENT EXCLUSIVE:
votes to pass a crucial Constitutional Amendment Proposal (PEC).This setback forced House Speaker Arthur Lira to postpone the vote until
Thursday
The proposed amendment is part of a broader set of fiscal measures.It seeks to modify rules for salary bonuses, the National Education
Development Fund (Fundeb), and public sector supersalaries
prioritize the PEC for voting
The motion passed with 294 votes in favor and 172 against
Yet, this tally fell short of the 308 votes required to approve a constitutional amendment.Notably, some allied deputies voted against the
Fiscal Package Faces Setback as Government Struggles to Secure Votes
(Photo Internet reproduction)All 12 PSOL deputies present and two PT members voted against the measure
The government will attempt to pass the PEC again on Thursday in a session scheduled for 10 AM.Time is running out as Congress enters recess
after this week
by Deputy Moses Rodrigues, concerns the Fundeb allocation
The Finance Ministry initially proposed allocating up to 20% of federal Fundeb resources to full-time education.The revised text reduced
this to 10%
This adjustment will only take effect in 2025, reducing the fiscal impact from R$11.6 billion ($1.84 billion) to R$4.8 billion ($0.76
billion).From 2026, states and municipalities must allocate 4% of their own Fundeb resources to this program
The PEC also addresses public sector supersalaries and modifies eligibility for salary bonuses.It extends the Untying of Union Revenues
(DRU) until 2032
However, it no longer revokes paragraphs requiring the government to execute the budget approved by Congress.As the government navigates
these fiscal challenges, the coming days will be crucial in determining the fate of its economic agenda