President Jair Bolsonaro could face a government shutdown in his first year in office. The problem is the so-called “golden rule,” which stipulates that Brazil may only increase its debt to pay for investments—the money can’t be used for basic expenses, such as wages. Breaking this rule is an impeachable offense.
To avoid it, the government must convince Congress to approve a BRL 248bn increase to its debt ceiling—a demand that was already included in the 2019 budget proposal, drafted by the previous administration. Without that additional money, however, there will be no funding for these so-called basic expenses, which include social security benefits.
For the past 30 years, Brazil’s basic expenses have grown at a faster pace
Homicides caused by the police continue to rise in Rio, going up 23% in April when compared to the same month in 2018. In comparison to March, these deaths dropped 4%. Over the year, an average of 5 citizens were killed every day in Rio. https://t.co/31YDFxryzx
Former Senator and chairman of Brazilian Social Democracy Party (PSDB) Eduardo Azeredo has left the party. He was likely going to be expelled or asked to leave by the party’s top brass. Azeredo was sentenced to 20 years in prison for corruption and money laundering https://t.co/aAWDpJiKs6
Brazi's Central Bank's decision to intervene in the depreciation of the Real hasn't worked so far, as the U.S. Dollar rate continue to rise around BRL 4.10 on São Paulo's stock market. The Central Bank has decided to tame the loss of value, holding three currency auctions by Wed. https://t.co/xnFWHjVQ8U