Good morning! This week, we talk about the path of the “Transition bill,” which will give Lula more leeway to spend. And a Supreme Court trial that could ban a massive pork-barreling tool.
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Transition bill to be voted in Senate
Senate President Rodrigo Pacheco scheduled a Wednesday vote on the so-called “Transition bill,” which grants the next government authorization to exempt social programs from federal spending cap rules.
- It also allows the government to jack up investment should tax revenue exceed expectations.
Why it matters. Without permission to spend outside current restrictions, many programs will be paralyzed, or the government will breach fiscal responsibility rules.
By the numbers. The bill suggests leaving BRL 198 billion (USD 37 billion) in social program expenses outside of the federal spending cap. That waiver would be valid for four years, which would span Lula’s entire term.
State of play....