Brasília, October 2, 2003 (Agência Brasil - ABr) - The Social Security reform can generate savings of R$ 60 billion for the country in 20 years: R$ 47 billion for the federal government and R$ 13 billion for the states. This affirmation was made by the secretary of the Federal Treasury, Joaquim Levy. With the reform, he said, it will be possible to achieve fiscal sustainability and national growth. Levy confided that inflation is expected to remain stable over this period.

To guarantee the savings, the Administration wants the Senate to maintain the text approved in the Chamber of Deputies. In principle, none of the items in the bill can be modified. The Minister of Social Security, Ricardo Berzoini, admitted that the only item in which alteration is possible refers to exempting retirees over 70 years of age and victims of disabling illnesses. "Changing this item will not cause big losses to the social security system, but any other change is unfeasible from the fiscal perspective," Berzoini affirmed.

With respect to an increase in state sub-ceilings, proposed in the Senate discussion, the Minister said that this will depend upon the willingness of the governors, since they are the ones who will have to cover the deficits. Berzoini assured that, by the end of the year, voting in the Congress will be concluded, including specific bills dealing with parity, average contributions to the different social security systems, and social inclusion. (DAS)