LatinNews Regional Monitor: Brazil & Southern Cone - 18 March 2020

* The Brazilian government led by President Jair Bolsonaro has said that it will request that the federal congress recognise a state of public calamity effective until 31 December 2020, in light of the coronavirus (Covid-19) pandemic. The declaration of a state of calamity dispenses the federal government from meeting its fiscal deficit target (set at R$124.1bn [US$24.78bn] for this year), as it ups public spending to contain the public health and economic impacts of the coronavirus. Such a move would not, however, remove the government spending cap or the so-called ‘golden rule’ (which bans debt issuance to fund current spending), constitutional rules which limit the government’s capacity to inject money into the economy.

End of preview - This article contains approximately 117 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial