The government’s strategy to avoid another truckers’ strike

The Brazilian government is pandering to transportation workers in a hope to avoid a truckers’ strike in the molds of the one which plunged the country into chaos one year ago. As truck drivers have started to express their uneasiness over rising diesel prices, the Jair Bolsonaro administration announced a BRL 500 million line of credit for the sector, financed by the National Development Bank.

According to the president’s Chief of Staff, Onyx Lorenzoni, the money will allow truckers to buy new tires and pay for the maintenance of their vehicles. Each worker will be allowed to take out up to BRL 30,000 in loans. Truckers’ unions, however, called the move a “handout” and said it doesn’t solve the problem.

The government also promised to finish the works on two major highway projects: the BR-163 (crossing Brazil from south to north), and BR-242 (from Brasília to Salvador).

During a press conference, the government didn’t mention where the money for the infrastructure projects would come from. According to the federal spending cap, the budget cannot be increased unless a new source of revenue is identified—or funds are allocated from other areas. Mr. Lorenzoni said the funds will come from multiple places.

Infrastructure Minister Tarcísio de Freitas also promised to study...