Although the objective is to concentrate resources on those who need them most, the measure is likely to exclude a significant portion of beneficiaries over time, which raises debates about social justice and the scope of income redistribution policies.
A significant change is the establishment of a minimum retirement age of 55 for military personnel, which was previously unrestricted. The proposal also includes the standardization of contributions to the Health Fund and the end of the redistribution of pension quotas in cases of death of dependents.
These measures meet the need for alignment with the civil social security regime, but face resistance from military sectors, which traditionally have great political influence.
Income Tax
One of the government's most widely publicized promises, the ukraine mobile database expansion of the income tax exemption bracket for incomes of up to R$5,000 per month, will not be implemented immediately. With an estimated cost of R$35 billion per year, the government's proposal is conditional on the creation of fiscal space.
Meanwhile, the taxation of incomes above R$50,000 per month will be increased, with a minimum effective rate of 10%. This redistribution seeks to alleviate the tax burden on the middle class, but raises concerns in the market about its impact on revenue.
Social Benefits (BPC and Bolsa Família)
The Continuous Benefit Payment (BPC) and Bolsa Família, essential programs for social protection, will undergo a new audit as proposed by Fernando Haddad.
Implementing biometrics for granting and renewing BPC is one strategy to prevent fraud. Although the measure has the potential to increase efficiency, there are concerns that it will make access more difficult for vulnerable populations, especially in remote regions.
Control of Parliamentary Amendments
To contain the increase in discretionary spending, parliamentary amendments will have an annual growth limit. This decision seeks to avoid excessive increases and promote greater fiscal control.