BRASILIA (Reuters) – Brazil’s decrease home of Congress could not vote on a landmark pension reform invoice till August, leaders mentioned on Friday, as intense negotiation over amendments delayed the method and diminished financial savings derived from the overhaul.
The federal government’s Pension and Labor Secretary Rogerio Marinho mentioned that after amendments the invoice is anticipated to avoid wasting near 900 billion reais ($240 billion) over 10 years if authorized, down from the greater than 1 trillion reais in financial savings the federal government initially sought.
The revision to the expensive pension system is President Jair Bolsonaro’s flagship coverage for slicing authorities spending and restoring well being to public funds.
Following approval of the principle textual content of the invoice by an awesome margin on Wednesday, Congress took up consideration of amendments in a course of that has taken far longer than predicted. Following amendments, the complete textual content should be submitted to a last second vote.
Brazilian markets fell amid the delays. The benchmark Bovespa inventory index receded 1.2% on Friday, the second day of declines after markets surged to document highs simply after the principle textual content of the invoice was authorized.
Home Speaker Rodrigo Maia instructed reporters that, given the delays, a vote on the ultimate textual content could be pushed to subsequent week, when there won’t be a quorum. That might imply the ultimate vote may solely occur in August after a July 18-31 recess.
Maia mentioned he would favor to not delay the vote nevertheless it was higher to not rush, and that ready 10 or 15 days extra is not going to make a distinction ultimately.
“What we will’t danger goes to a second spherical and shedding the vote,” he mentioned.
Marinho predicted that the decrease home would maintain the ultimate vote on the invoice on Aug. 6, whereas the Senate would vote by September.
Elevating the retirement age, rising staff’ pension contributions and lowering some staff’ pension advantages have provoked robust opposition from some lawmakers.
However efforts to strip out financial savings may threaten efforts to shut the nation’s finances hole.
The federal government had initially sought financial savings of greater than 1 trillion reais, with Maia predicting financial savings of 900-950 billion reais earlier this week.
Financial system Minister Paulo Guedes warned final month that financial savings of round 860 billion reais could be inadequate, leading to an “aborted” reform requiring one other repair in 5 or 6 years.
($1 = three.7358 reais)
Reporting by Maria Carolina Marcello; Writing by Jake Spring; Enhancing by Cynthia Osterman and Daniel Wallis