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Budget discussions in Brazil could see spending cap breached

The government is drafting the 2021 budget, but the spending cap created in 2016 leaves very little room for Brazil to maneuver, especially during a pandemic

Budget discussions in Brazil could see spending cap breached
Photo: Igor Stevanovic/Shutterstock

In the Brazilian political schedule, August is the time set aside to hammer out the details of the following year’s budget. According to rules on public spending, the Executive branch must send its proposal to Congress before August 31, meaning the last few weeks have been marked by intense disputes — on and off the record — over funding. In Brasilia, cabinet ministers and secretaries are exchanging requests looking for more money for their respective departments or trying to avoid big cuts. But for 2021, most of these calls would fall on deaf ears if the government decides to follow...

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