Bolsonaro scores massive win as Congress passes his ‘Desperation Bill’

The Brazilian Congress approved a proposal that has become known as the “Desperation Bill,” which changes the Constitution and puts Brazil under a state of emergency until the end of the year.

In such conditions, the Jair Bolsonaro administration will be authorized to spend an extra BRL 41.2 billion (USD 7.7 billion) on social policies and stimulus programs until the end of the year — hoping to curry favor among the populace ahead of the October election. 

“Desperation Bill” is only one of the proposal’s multiple nicknames. Officials within the Economy Ministry have reportedly referred to it as the “kamikaze bill” because of how it would affect government expenditure.

Brazil has a cap in place for public spending, introduced as a form of institutionalized austerity: increases in the total amount invested by the government cannot exceed the inflation rate from the previous year. If a given administration goes over this yearly limit, it could be subject to impeachment. 

However, the Desperation Bill pokes gaping holes in this fiscal ceiling, paying for a 50-percent increase in monthly payments of the Auxílio Brasil cash-transfer program — President Jair Bolsonaro’s flagship social policy. 

The bill also includes a stimulus package for truckers and taxi drivers, as well as for senior citizens.

The Independent...