Good morning! Today, we discuss the details of Lula’s fiscal framework plan — and the threats to the plan’s success, as the government is foregoing revenue and is expected to face resistance from corporate lobbies to pass a tax reform. And another football match-fixing scandal.
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Fiscal framework finally put forward
President Luiz Inácio Lula da Silva and Finance Minister Fernando Haddad presented congressional leaders with their proposal for a new fiscal framework to replace the federal spending cap approved in 2016. The outlines of the project were unveiled on March 30, but now the details are in — and Congress can finally begin deliberations.
What we already knew. Government spending will only be able to grow by 70 percent of revenue growth from one year to the next. However, investment in key areas such as health care and education will be allowed to grow more: up to 100 percent of revenue growth.
- If the government fails to meet its primary surplus target in a given year, the following budget can...