When Congress finally approved the 2021 federal budget at the end of last week, it appeared that a huge weight was finally lifted off the government’s back. But celebrations were put on ice when it became apparent that the budget proposal was little more than an unworkable farce, sparking a crisis that could lead the administration to breach fiscal responsibility rules.
Problems began with the delay.
By only approving the budget three months after the usual deadline, the proposal was based on government estimates made in August of last year — now extremely outdated. In mid-2020, Brazil’s benchmark...
