House, government don’t see eye to eye over emergency salary

coronavirus emergency salary

In a press conference on Wednesday, House Speaker Rodrigo Maia countered a statement made earlier in the day by Economy Minister Paulo Guedes — that it would take a constitutional amendment to approve the proposed BRL 600 emergency salary for informal workers without the government risking a breach of fiscal rules.

Mr. Maia said the payment is already possible after receiving the green light from Congress — a loophole in fiscal responsibility laws allowing the government to increase deficits as long as it is previously approved by lawmakers. On Tuesday, the speaker called out the government for taking so long to sign the emergency salary into law, after Congress had passed it on Monday evening.

President Bolsonaro promised to ratify the emergency salary proposal on Wednesday.