Today: the government breaks its promise of a major economic plan. More mergers in Covid-19-hit Brazil. Pandemic set to push people down the social ladder. Delivery app invests in automation.
No bang for Paulo Guedes
The government promised to launch a major plan today to foster economic growth by way of infrastructure projects, job-creation programs, housing policies, and a boost in cash-transfer initiatives. It was presented as Economy Minister Paulo Guedes’ “Big Bang,” and a way to show investors that the government has a plan for the post-pandemic situation, while also pushing for policies capable of soaring President Jair Bolsonaro’s electoral stock.
- In the end, though, there will be no “bang” in Brasília today, as Mr. Guedes and the president were unable to agree on the specifics of the program. The main issue is Renda Brasil (Income Brazil), billed as a beefed-up version of cash-transfer program Bolsa Família. The Economy Ministry proposed a system with monthly payments of BRL 250 (USD 45), which is less than what Mr. Bolsonaro wants.
- Additionally, Mr. Guedes wants to fund the new plan by cutting existing programs, including one that gives large discounts for medications to around 31 million Brazilians. Mr. Bolsonaro said no.