Final CPI report says that deficit does not exist



Final CPI report says that deficit does not exist







The CPI's Rapporteur for Social Security, Senator Hélio José (PMDB-DF), presented the final report of the investigation that scrutinized the cost of social benefits and affirmed that "it is possible to affirm with conviction that there is no Social Security or Social Security ".

 According to the rapporteur, the arguments used by the government to carry out pension reform have "serious flaws" and inconsistencies.
"The arguments assembled by the federal government on Social Security accounting, whose purpose is the approval of Proposed Constitutional Amendment No. 287, of 2016, are absolutely imprecise, inconsistent and alarmist," said Hélio José.

"The government's great argument in its Social Security change contract relates to the existence of a perennial and explosive social security deficit.

This is an affirmation that, despite being repeated by the government, is not supported by a large number of scholars. "According to the rapporteur, the Social Security budget began to be misrepresented in the government of former President Fernando Henrique Cardoso ( PSDB).
According to the rapporteur, FHC "has reached death" with the "systemic and integrated vision" of Social Security by removing the possibility of "financial compensation" from the basic pillars of social security: health care and social assistance.
"There has been an effective disintegration of the three areas: Health, Welfare and Social Welfare have gained a perverse autonomy both financially and in terms of management," he explained.
In the text, the rapporteur also pointed out that some of the largest Social Security debtors continue to benefit the government, such as JBS.

According to the CPI, only JBS owes about R $ 2.4 billion to Social Security. "It is lacking to collect debtors and not want to harm workers and retirees, once again," he said.

source writing https://www.brasil247.com/en/247/brasil/323795/

Brazil





the mask of the "deficit" of Social Security







Brazil Maria Lucia Fattorelli: the mask of the "deficit" of Social Security

IN HIGHLIGHTS, NEWS JANUARY 31, 2017 22:22



In order to face the necessary debate about Social Security honestly, the government must present the complete data of the Social Security budget of the last years

By Maria Lucia Fattorelli *, on the website of the Citizen Debt Audit
The current Social Security Secretary, Marcelo Caetano, announced that he would present a catastrophic "deficit" of the Social Security system, with the intention of defending the Social Security counter-treaty described in PEC 287/2016, on January 26, 2017. reached in 2016 the amount of R $ 149.7 billion.
The secretary pointed out that this "deficit" refers to the General Social Security System (RGPS) and encompasses both the urban sector, which would have reached a "deficit" of R $ 46.8 billion, such as the rural sector, in which the "deficit" would have reached R $ 103.4 billion. He even admitted that in the period from 2009 to 2015 the urban sector of the RGPS was a surplus, and soon he added that "the trend is a deficit" (!), Without paying attention to the fact that we had a record year of unemployment that has nothing to do with the trend of our potentially rich country.

In his presentation, the secretary made it clear that, more than once, in this deficit there is no incidence of DRU - Unrelated Union Revenue -, explaining that if this were computed, the deficit would be even greater. However, at no point did he mention that he no longer counts the DRU because he did not count the income that sustains Social Security, of which Social Security is an integral part.
Unmasking the "Deficit"
The so-called "welfare deficit" is a farce. The account made to show the "deficit" is a distorted account.
Social Security is one of the Social Security tripods, along with Health and Social Assistance, and was one of the main achievements of the Federal Constitution of 1988.
At the same time that the constituents created this important tripod, they also established the sources of income - social contributions - that are paid by all sectors, that is:
companies contribute to the profit (CSLL) and pay the employer's share on the payroll (INSS);
workers contribute their wages (INSS);
and the whole of society contributes through the built-in contribution to all that it acquires (COFINS).
Besides these, there are contributions on imports of goods and services, revenues from contests and forecasts, PIS, PASEP, among others.
Social Security has been highly surplus in recent years, in tens of billions of reais, according to official data segregated by ANFIP. The surplus of resources was of R $ 72.7 billion in 2005; R $ 53.9 billion in 2010; R $ 76.1 billion in 2011; R $ 82.8 billion in 2012; R $ 76.4 billion in 2013; R $ 55.7 billion in 2014, and R $ 11.7 billion in 2015.

The repeated surplus of the Social Security should be fomenting debates on the improvement of the Social Security, Assistance and Health of Brazilians and Brazilians. This does not happen due to the priority in the allocation of resources for the payment of the so-called public debt, which is absorbing about half of the federal budget annually, and which has never been audited, as mandated by the Constitution.

The fallacious deficit presented by the government is found when one compares only the collection of the INSS contribution paid by employees and employers (leaving aside all other contributions that make up the Social Security budget) with the totality of the expenses with the Social Security, there is a dismemberment that does not have amparo in the Constitution and does not even have a defensible logic, since the workers are the biggest contributors of COFINS.
This distorted account, which compares only the contribution to the INSS with Social Security expenditures, produces the farce of the "deficit" that does not exist.

Article 194 of the Constitution is clear in establishing Social Security as an integrated system composed of the areas of Health, Welfare and Social Assistance, while Article 195 deals with Social Security financing throughout society. The dismemberment of Social Security faces the Constitution, which at no time says that its funding would be borne solely by contributions to the INSS.

The government has been omitted repeatedly and does not present the Social Security budget as it should.
The mere existence of the DRU mechanism already proves that there are resources in Social Security. If there were no appeal, there would be nothing to disassociate, of course. It should be remembered that the DRU, created since 1994 under the name of the Emergency Social Fund, had its rate increased in 2016, and it unties up to 30% of Social Security funds to transfer them to the payment of part of the interest on the public debt.

It is necessary to remove the masks from the fallacious "deficit" of the Social Security, in order to face this necessary debate in an honest way. For this, the government must present the complete data of the social security budget of the last years, also informing the amounts diverted through the DRU; the amounts corresponding to the exemptions granted to both urban and rural sectors; the tax credits that are not executed, also paying attention to the errors of the monetary policy that played the country in this absurd crisis that compromised the collection of the INSS, due to the increase of the unemployment for more than 12 million people, besides the 64 million people in age of working, however, outside of the labor market in our country.
The distorted analysis of this fallacious "deficit" can not serve as justification for PEC 287, whose main objective is to favor the financial market, as discussed in another article.

We call on the Secretary Marcelo Caetano and others responsible to come to the public to present the complete Social Security, DRU, deregulation, credit, and collection potential through policies to combat unemployment, so that we can hold the debate on Social Security without masks.

* National Coordinator of the Citizen Debt Audit

Video presentation of Marcelo Caetano available at <https://www.facebook.com/PrevidenciaOficial/videos/1832252203709401/>

Article 194 of the Federal Constitution:
Art. 194. Social security comprises an integrated set of initiatives of the Public Authorities and of society, aimed at ensuring the rights related to health, welfare and social assistance.
Single paragraph. It is the responsibility of the Public Power, according to the law, to organize social security, based on the following objectives:

I - universality of coverage and care;
II - uniformity and equivalence of benefits and services to urban and rural populations;
III - selectivity and distribution in the provision of benefits and services;
IV - irreducibility of the value of benefits;
V - equity in the form of cost sharing;
VI - diversity of the funding base;
VII - democratic and decentralized administration, through four-party management, with the participation of workers, employers, retirees and government in the collegiate bodies.
Art. 195 of the Federal Constitution:
Article 195. Social security shall be financed by the whole of society, directly and indirectly, in accordance with the law, through funds from the budgets of the Union, the States, the Federal District and the Municipalities, and the following social contributions:
I - the employer, the company and the entity assimilated to it under the law, concerning:
a) the payroll and other income from work paid or credited, in any capacity, to the natural person who serves him, even without employment relationship;
b) revenue or billing;
c) profit;
II - the employee and other social security insured persons, with no contribution on retirement and pension granted by the general social security scheme referred to in art. 201;
III - on the prognostic contest income.
IV - of the importer of goods or services from abroad, or of whom the law equates it.
Analysis of Social Security 2015 prepared by ANFIP, according to the publication available at http://www.anfip.org.br/doc/publicacoes/20161013104353_Analise-da-Seguridade-Social-2015_13-10-2016_Anlise-Seguridade-2015.pdf

Read too:
"Pension Reform" [PEC 287]: the government has already rewritten the plans
"Pension reform", public debt and the aging population

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