PT Leadership Backs Lula’s Fiscal Adjustment as Internal Fissures Surface

Overview

• The PT’s Diretório Nacional formally backed the government’s fiscal-adjustment bill after the Senate approved the PLP text-base by a 45–31 vote, a decision taken at the party meeting on Friday, Nov. 13.
• The resolution praised the package for giving “greater budget flexibility” and blamed the central bank’s high policy rate for blocking growth, while calling for a review of parliamentary emendas that channel roughly R$60 billion of spending.
• Edinho Silva, the party president, said claims the plan would cut health, education or social programs are false and accused opponents of spreading disinformation.
• Many PT figures nonetheless criticized the process for lack of consultation, demanded more taxation of the wealthy and sought greater ministerial representation, and party veterans warned the proposed new Ministry of Security would be underfunded if only about R$4.5 billion is allocated.
• The backing clears the way for four remaining Senate votes scheduled for Nov. 17 and for a separate congressional debate on the PEC to lower the age of criminal responsibility between late November and early December, a sequence that will test PT unity and the government’s ability to hold its coalition.