Government announces the release of R$ 200 billion for health and job maintenance

The President of the Republic, Jair Bolsonaro, announced on the morning of Wednesday (April 1) that he sanctions today the Bill that institutes the emergency aid of R$ 600 for informal workers, unemployed, individual micro-entrepreneurs (MEIs) that integrate low-income families, and intermittent workers who are inactive at the moment and therefore without a source of income. Mothers who are the only ones responsible for supporting their families may receive up to R$1,200.

"There are 54 million people who will be affected, at a cost of approximately R$98 billion to the Treasury, and who will receive aid of R$600 for three months, which could reach R$1,200," the president said in a speech at the Palácio do Planalto, together with the Ministers of Economy, Paulo Guedes, of the Civil House, Walter Braga Neto, and the Minister of Citizenship, Onyx Lorenzoni.

On that occasion, the president stated that, today morning, he will also sign three other Provisional Measures (MPs) aimed at minimizing the economic effects of the Covid-19 pandemic in the country: One guarantees the complementation of salaries for workers who will have their workloads and salaries reduced, at a cost of R$51 billion; another makes available credit to pay the payroll of small and medium enterprises for two months, in exchange for the guarantee of jobs (total of R$ 40 billion, being R$ 34 billion from the national Treasury and R$ 6 billion from private banks); and the third releases R$ 16 billion in support to federal entities in complementation to the Participation Funds of the States (FPE) and Municipalities (FPM).

Detailing

Following the president's speech, Minister Guedes gave details of the measures. He recalled that in 2019, the federal government already distributed R$12 billion to states and municipalities with the funds from the onerous transfer. He added: "We have already started this year sending R$16 billion to state and municipal funds, totaling R$88 billion, including debt rollover and new credits. The magnitude is enormous. This shows the president's commitment to the thesis of strengthening the Brazilian federation," he emphasized.

Guedes explained that these measures reach R$200 billion (US$162 billion) and are focused on preserving Brazilians' health and maintaining jobs. "The president has drawn a lot of attention to the fact that there are two waves, the first is that of health and the other is that of economic disarticulation, which threatens us," he explained.

When mentioning the MP that will allow companies to reduce salaries and the workload of employees for three months, the minister clarified that the government will pay part of the salaries, taking into account the proportional amount that the worker would be entitled if he received unemployment insurance: "If the company is in difficulty and wants to reduce 25, 30% of salary, the government will pay 30% of the salary, that is, we are paying the companies to maintain the jobs," he said.

The minister also explained how the program that will offer credit to pay the payroll of small and medium-sized companies will work: "In the same way, we are opening a credit. The National Treasury is launching it, in other words, it is an aid credit.

This line of credit will not cost only the government, it will be jointly shared with the banking system, according to Guedes: "They also have to put in resources. We are putting up R$34 billion and the banks are putting up R$6 billion, for a total of R$40 billion. We call it Fopa, it's the payroll (...). So, for the company that decides to keep a job, not only do we complete the salary, but we give the credit to the payroll and the money goes straight to the worker," he added.