On the eve of President Jair Bolsonaro’s deadline to sign off on this year’s federal budget proposal, the government and Congress came to an agreement to settle the long-running imbroglio around this year’s financial plan. Considered “unworkable” by specialists, the original budget proposal approved by the lower house last month could put Bolsonaro at risk of impeachment for breaking fiscal rules.
This week, Congress approved changes to the 2021 budget plan, decoupling all pandemic spending from Brazil’s federal spending cap, which could amount to over BRL 100 billion (USD 18.2 billion). According to Economy Minister Paulo Guedes, the government backed the modifications and made the budget feasible again. By the end of the day today, Mr. Bolsonaro must either ratify the proposal or veto it.
Decoupled expenses include the BRL 44 billion budget for the government’s latest round of coronavirus emergency benefit payments, as well...
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