Debate on the adequacy of PEC 38/2025 administrative reform

Two experts diverge on PEC 38/2025, a proposed administrative reform under consideration in Brazil's Chamber of Deputies. One supports it for promoting efficiency and cost reduction, while the other warns of risks to public service precarization and loss of server rights.

PEC 38/2025, which alters public administration norms to improve governance, management, digital transformation, professionalization, and extinction of privileges, is under consideration in Brazil's Chamber of Deputies after approval in a special commission. Representing the National Federation of Telecommunications and IT Infrastructure (Feninfra), its president argues that the proposal addresses the needs of productive sectors, society, the Legislature, and the government, seeking greater productivity and lower costs. He notes that Brazil spends 3.5% of GDP on public servants, more than most countries, without proportional efficiency, and stresses the need for salary and career plans, performance evaluations, and productivity incentives, including dismissals for poor performance. 'It is urgent to review the structure of the state machinery, whose weight impacts all productive chains,' he states, citing the telecommunications sector with 32,000 companies, 2.1 million jobs, and R$50 billion in annual taxes, amid a 33.27% tax burden on GDP and investments at 17% of GDP, needing 22% for sustained growth.

Conversely, a retired justice from the São Paulo Court of Justice and president of the Association of Public Employees of the State of São Paulo (AFPESP) criticizes the PEC as a reckless project that reduces rights, weakens careers, and opens doors to outsourcing and instability. He highlights the extinction of seniority bonuses, careers with at least 20 categories, prohibition of raises and retroactive payments, rigid personnel expense limits, and the 'temporary civil servant' figure, dismissed after ten years without stability. 'The public contest, which ensures merit, and stability, which preserves the technical independence of servers, are society's defenses,' he argues, warning that the measure will indirectly affect current servers and benefit private sectors seeking to profit from public resources. AFPESP supports the manifesto from the Forum of Server Entities against the plenary vote, advocating for a reform with valorization and dialogue.

The debate reflects tensions between state efficiency and public service protection, in a country where the public machine consumes about 40% of resources, prioritizing areas like health, education, and security.

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