Today we’re covering the government’s 2021 budget quagmire. Renewed hope for WhatsApp Pay. And Facebook’s move into e-commerce in Latin America.
Government running out of time (and money) to draw up 2021 budget
To deal with the coronavirus, Congress declared a state of public calamity — which lifts several controls on public spending — and approved the so-called “War Budget,” essentially creating a separate budget for expenditure on measures to counter the effects of the pandemic, both in economic and health terms. These moves were key for the federal government, as it allowed it to disregard fiscal caps in order to enhance the public debt and inject money into the economy.
- But these instruments expire on December 31, 2020 — and the government must already figure out what it will do in 2021, a year that is likely to be another one of crisis. According to the World Health Organization, Brazil is still a “long way” from beating the coronavirus.
Why it matters. The federal government must present its budget proposal for next year by August 31. Figuring out how to stimulate the economy will be a tough nut to crack, considering that the federal spending cap is set to kick in.
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