We’re covering the government’s efforts for economic relief against Covid-19. Jair Bolsonaro’s inflammatory address to Brazilians. And the possibility of a “war effort” in Brazil.
How much is Brazil actually spending against Covid-19?
Almost every day over the past week, the Economy Minister has announced some form of new measure to ease Covid-19’s blow to the Brazilian economy. Many solutions involve bringing forward expenses that had already been budgeted, as opposed to bringing any “new money” to help fight the problem. Investment bank BTG Pactual came up with an estimation of the total amount to be spent by the government and public banks: BRL 478 billion so far (USD 93.7 billion).
Why it matters. Without government intervention, economies will not be able to weather the storm. But actions in Brazil so far dwarf what other countries are doing. The U.S. government, for instance, has proposed a USD 2 trillion stimulus package—which is more than Brazil’s entire GDP.
Breakthrough. The lion’s share of the money announced by the government is aimed at keeping the economy on track, rather than providing the resources for containing the virus. Only BRL 11.8 billion are unmistakenly going to the Health Ministry—with another BRL 8 billion...