With 10% of the seats in the Rio de Janeiro City Council, the PT and Psol benches managed to pressure the president of the local Legislature, Councilor Carlo Caiado (DEM), and maintain some rights of the municipal civil servants in the vote on the city’s New Fiscal Regime , on the night of last Tuesday (5).
The Complementary Law Project 4/2021, authored by Mayor Eduardo Paes (PSD) and the municipal secretary of Finance and Planning, Pedro Paulo, establishes goals and actions to be adopted by the City Hall of Rio de Janeiro, according to the financial situation of the city. and received 107 amendments proposed by councilors, of which 39 were approved and incorporated into the text.
Read more: Paes proposes to the Chamber a project that advances on investments, rights and public service
Among the changes are the removal of excerpts that would affect civil servants’ rights, such as the counting of time to grant additional (trienniums), and the maintenance of prerogatives of the Chamber, such as the need to approve specific laws for the extinction of public companies, for example.
The new regime uses payment capacity assessment indicators established by the National Treasury (CAPAG) to guide fiscal policy, triggering “triggers” with corrective measures and prohibitions. These indicators can range from D to A, a note that is used to classify, for example, financing that the Union grants to federative entities. Rio, which was previously classified as B, is currently in category C.
Articulations between the City Council, City Hall and representatives of civil society and municipal employees were fundamental to guaranteeing the approval of amendments that preserved the prerogatives of the Legislative Power and the rights of public servants in the municipality.
Councilor Tarcísio Motta (Psol) said that PLC 4 is “an indigestible mixture of the Paes government between the Fiscal Responsibility Law and the terrible Spending Ceiling”, but that thanks to the struggle of the servers, some items were removed from the project.
Among the items removed from the approved project are the freezing of service time for three years and career plan, prohibition of new salary readjustments, prohibition of the creation of positions and new career plans.
PT leader, councilor Lindbergh Farias also highlighted the intense collective work done in the debate on the project, which, according to him, would empty the Chamber’s prerogatives. “Today, for me, is a day of victory for this House, of victory for the Legislative Power and municipal civil servants”, he said. “The municipal Legislative Power is strengthened”, he added.
The approved proposal foresees, for example, the reduction of 50% in special charges, 20% in advertising expenses and the allocation of the surplus of municipal funds to pay off debts and the limitation of current expenses to 97.5% of the total revenue , among other measures, when the city is in category C. The quantity and intensity of restrictions would be increased if the city were to move to category D, for example.
The Executive argues that, in order to reverse the process of deterioration in economic indices, aggravated by the pandemic, it is necessary to establish permanent fiscal responsibility, making it possible, in a short period of time, to recover the capacity for investments, to create jobs, and robust social policies.
Another measure created, through a parliamentary amendment, creates a rule for the settlement of the so-called Restos a Pagar, which are debts incurred by the City for services rendered by suppliers in the previous year. The rule allows the installment of part of the debts contracted in 2020 for 10 years and institutes the mechanism known as reverse auction, in which creditors who offer debt discounts gain priority to receive payments.
Voted on in the first discussion, the project still needs to go through a second discussion in plenary.
Source: BoF Rio de Janeiro
Edition: Eduardo Miranda