country can save R$180 billion in ten years

The approval of an administrative reform could mean savings to the public coffers of up to R$180 billion over the next ten years, according to a study by the management company Ryo Asset. “It’s a volume that starts small and gains momentum every year, with the retirement of current employees”, explains Gabriel Barros, partner and chief economist at the consultancy.

The reform, according to Barros, would be conservative, would not affect the rights of current employees and would only be valid from the next competitions onwards. The government should take advantage of the moment to renew its staff. “If the rule is not changed now, the current expense will be extended for another 40 years”, he warns.

The idea of ​​an administrative reform has been defended by the president of the Chamber, Arthur Lira (PP-AL), but is rejected by the government of Luiz Inácio Lula da Silva, which allows at most specific changes to the legislation. The main proposal on the subject in Congress is PEC 32/2020, presented by the government of Jair Bolsonaro (PL).

The Minister of Management and Innovation, Esther Dweck, has argued that civil service rules need adjustment, but does not support the end of civil service stability. One of the proposals under discussion is to slice up the package of measures that involve the public sector, without the need to present a constitutional amendment.

Pressured by criticism of the lack of instruments for rationalizing spending and cutting expenses, economic ministers held a meeting last week to discuss ways of responding to demand.

Upon leaving, Fernando Haddad, from Finance, did not commit to administrative reform, but said that the government is studying ways to modernize the State. He defended the approval of the Supersalários PL, stuck in the Senate since 2021, after pressure from the Judiciary. “We have managed to move forward with many issues, we can do so with the project too,” Haddad told reporters.