Lower house approves core points of so-called “War Budget”

. May 06, 2020
Lower house approves core points of so-called War Budget Speaker Rodrigo Maia talks to reporters. Photo: Lula Marques/AGPT

Brazil’s lower house approved the core points of the so-called “War Budget.” The bill splits the federal budget in two, leaving the country with the regular budget, and a supplementary one for expenses related to the Covid-19 pandemic. It would allow the government to spend an extra BRL 600 billion and not be limited by fiscal responsibility rules, which dictate that the government cannot take on debt to pay for current expenses.

This parallel budget would only be in place until the end of the year, or as long as Brazil’s state of public calamity last. And Congress will have the power to oversee the Executive’s spending decisions. 

Other measures included in the bill allow for public and company bond purchases by the Central Bank to ensure liquidity for markets. The proposal also foresees less bureaucratic processes for hiring temporary workers in infrastructure and services related to the fight against Covid-19 pandemic.

Brenno Grillo

Brenno has worked as a journalist since 2012, specializing in coverage related to law and the justice system. He has worked for O Estado de S. Paulo, Portal Brasil, ConJur, and has experience in political campaigns.

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