Good morning! Today, we explain the future government’s request to spend. Lula v. the markets during the transition period. An impeachment request against the defense minister. And Jair Bolsonaro’s “disappearance.”
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The “Transition Bill” proposed by the next government
Political leaders working on President-elect Luiz Inácio Lula da Silva’s transition team visited Congress on Wednesday to present their plea for permission to finance government programs outside the bounds of the constitutional federal spending cap.
What they want. The bill does not set a specific amount of money in this license to spend, but the budget for an enhanced Auxílio Brasil cash-transfer scheme — which will return to its old name, Bolsa Família — may cost around BRL 175 billion (USD 32.4 billion) next year alone.
- Lula promised to keep payments at BRL 600 (the current budget proposal only has space for BRL 405) and create a BRL 150 bonus per child in a household.
Why it matters. The 2023 budget presented by the Jair Bolsonaro administration does not set aside enough money...