Good morning! Bolsonaro is on the ropes after the release of the final Covid inquiry report, but it could have been worse for the president — and he seeks to spend his way out of trouble. Meanwhile, the threat of a truckers’ strike becomes more and more real.
Amid Covid inquiry pressure, Bolsonaro plans spending spree
On the very day the Senate’s Covid inquiry submitted its final report (more below) — accusing President Jair Bolsonaro of nine crimes, including crimes against humanity — the government decided to essentially obliterate the federal spending cap in a push for popularity.
What happened. Responsible for social policies, the Citizenship Ministry confirmed that the brand-new Auxílio Brasil cash-transfer program “should pay out no less than BRL 400 (USD 71)” a month. Handouts would begin next month and run until December 2022 — when Mr. Bolsonaro’s term ends.
- The proposal is largely unchanged from the one the government intended to launch on Tuesday but backpedaled due to a very negative reaction from markets.
Poking holes. Economy Minister Paulo Guedes, once seen by markets as the pro-market guarantor of the Bolsonaro administration, discussed having a “license to spend” at least BRL 30 billion above constitutional expenditure ceilings.
The...