On Wednesday, the Jair Bolsonaro administration submitted its pension reform proposal to Congress. The bill is the single most awaited piece of legislation from this government. We at The Brazilian Report have broken the project down. Mr. Bolsonaro’s economic team, led by the ultra-liberal Economy Minister Paulo Guedes, is hoping to balance the social security deficit and, therefore, give some stability to Brazil’s public accounts.
According to the Ministry of Economy, if approved, the pension reform could save up to BRL 1.16 trillion over ten years—if Congress doesn’t neuter the bill, of course. But even if Mr. Guedes’ projections are right—and that’s a big if—the social security deficit is estimated at BRL 3.1 trillion for the next decade.