Good morning! Today, Bolsonaro lays out his congressional road map for the election year. Brazil’s 2022 inflation will be hard to predict. Agribusiness wins again as House loosens pesticide regulations.
The government’s priorities for the year
The Brazilian government published its platform for 2022, including 45 priorities to push forward in Congress. While most of the items concern economic reform, President Jair Bolsonaro made sure to include matters that he believes will boost his re-election prospects. These include:
- Inflation: There are two bills that Mr. Bolsonaro hopes will reduce gas prices at the pump (up by 44 percent in 12 months). One changes the formula for state-level taxes on goods and services (ICMS) and the other authorizes the government to lift federal levies on diesel.
- Credit: The government wants to make progress on a bill allowing borrowers to use the same piece of real estate as collateral for multiple loans — aiming at expanding credit. The real impact of this is debatable, however, as benchmark interest rates have shot way up in the past year.
- Agro: Mr. Bolsonaro has called for looser regulations on environmental permits and permissions for mining ventures on indigenous lands and border areas.
- Environment:...