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New Welfare will correct injustices and help balance budget

New Pension

In the Senate, special secretary of Social Security and Labor of the Ministry of Economy stressed that the acquired rights will be respected

The Special Secretary of Welfare and Labor of the Ministry of Economy, Rogério Marinho, attended this Tuesday (10/9) thematic session of the Senate on the text of the Proposed Amendment to the Constitution (PEC) 06/2019, the New Welfare. He stressed that the current pension system is unfair, privileging the richest, and generates a large deficit on public accounts, preventing the state from investing in areas such as Health and Education. "Few earn much and many earn little," he said.

"Brazil is spending seven times more on social security than on education and six times more than on health," said Marinho. He said that modernization will create a healthier system, aimed at rebalancing the Union budget from now on, but with full respect for acquired rights. "We will not fail to pay retirement or care for the elderly. We are saying that we need to rebalance the budget to invest more in education and health," said the secretary.

“In 2018, the social security deficit was R $ 265 billion, among which it was collected and invested to pay the pension and assistance system in Brazil. And in 2019, will be $ 294 billion. This is progressive year by year, ”he said. Marinho explained that the Brazilian population is living longer and that the fertility rate has been falling gradually. This means that fewer people of working age are making payments to the pension system year by year.

The current pension system has become unsustainable from a tax point of view, said the secretary. "The increase of the pension to our debt is $ 40 billion year on year, which compresses the discretionary spending of the budget and prevents each year the federal government, and by extension the states and municipalities, have resources to invest", said.

The secretary stressed that who earns more will contribute more, and who earns less will contribute less, but that everyone will contribute. “At no time did we say that this or that Brazilian citizen would fail to do his part in this effort to reorganize public finances and allow the Brazilian welfare system to remain healthy for those who are in it and those who will join it in the future. Ensuring the sustainability of the system is essential, ”he explained.