Maintaining of presidential veto means challenges in political articulation and aid program

BRAZIL POLITICS - Report 21 Aug 2020 by Murillo de Aragão and Cristiano Noronha

After the voting results in the Senate on August 19, in which the government was defeated in the vote on maintaining the veto to raise civil servants’ salaries, intense political articulation was implemented to reverse the result in the Lower House. The Planalto Palace was victorious and President Jair Bolsonaro’s veto was maintained. (See our report from August 20, 2020, "Lower House upholds veto on civil service salaries".)

In addition to President Jair Bolsonaro and the Minister of the Economy, Paulo Guedes, as well as other members of the economic team's showing the representatives the immense negative impact on public accounts if the veto was not maintained, the President of the Lower House, Rodrigo Maia (DEM-RJ), and the new government leader in the Lower House, Ricardo Barros (PP-PR), were decisive actors in reversing the defeat in the Senate.

The outcome shows that, even with the improvement in political articulation through the construction of a governing coalition anchored in the center, controversial issues such as salary increases for public servants, Administrative Reform (not yet sent to Congress), and even Tax Reform will likely face resistance. The political and social need of the government to extend emergency aid, combined with economic variables such as the drop in tax collection, highlight the importance of the Lower House’s decision to maintain President Jair Bolsonaro’s veto of the increase of civil servants’ salaries amid an economic crisis.

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