Today: Experts say Brazil’s new austerity bill does not go far enough and is not worth the hassle. States go in different directions on Covid-19 restrictions. Lula or Bolsonaro? Some voters say they could pick either.
Austerity bill: too much trouble for too little results
On Thursday, Congress approved the constitutional amendment proposal granting the government BRL 44 billion (USD 7.9 billion) to revive the coronavirus emergency salary program. This money will not be subject to federal spending cap rules, which limit the sitting administration from raising public expenditure above inflation. The proposal also gives the government some instruments to enact austerity measures, such as freezing civil servants’ wages. The bill’s savings potential, however, has been largely neutered.
- After police unions threatened to cut ties with President Jair Bolsonaro, the government itself worked to dilute the proposal — permitting automatic promotions for civil servants and public security workers during periods of austerity.
Are more austerity controls better? As approved, the bill makes its estimated savings of BRL 150 billion in ten years uncertain. Still, it creates yet another layer of controls on public spending: a goal toward reining in the public debt.
- As things stand, the government already has to...