The Federation of Commerce of Goods, Services and Tourism of the State of São Paulo (FecomercioSP) issued a statement supporting the approval of the Proposed Constitutional Amendment (PEC) 241, which establishes a ceiling for public spending starting in 2017 for 20 years.
According to the entity, the PEC is a “creative” solution and a modern instrument of fiscal policy. “In the entity’s view, the PEC is a possible and creative alternative in light of the infeasibility and lack of a deadline to formulate, approve, and implement a complete and complex fiscal reform from the top down,” said FecomercioSP.
According to the Federation, the public spending ceiling will impose on all levels of government the task of managing their budgets efficiently. “If the ceiling is not met, there are eight sanctions that can be applied to the government, including the prohibition of real increases for the minimum wage,” the entity highlights.
Fecomercio also stated that the PEC cannot be held responsible for any potential cuts in education and health spending. “The control of spending will be on the global volume, so that resource managers (ministers, mayors, governors) may even increase spending in health and education, as long as they prioritize them and reduce other expenses such as advertising, personnel costs, commissioned positions, bureaucratic costs, among others.”
Source: Agência Brasil