LatinNews Daily - 07 September 2020

* Brazil’s economy ministry has presented the fiscal impact of its response to the coronavirus (Covid-19) pandemic, which is now estimated to push the central government’s primary deficit to R$866.4bn (US$163.5bn) in 2020, or 12.1% of GDP (the initial fiscal target had been a primary deficit of R$124.1bn). The pandemic and the measures taken in response have had a fiscal impact of R$605bn so far – with R$20.6bn resulting from loss in revenue and R$584.3bn representing extra spending. The 'emergency basic income' subsidy represents the largest expense, costing R$321.8bn (this includes the cost of extending it until the end of the year at a lower value). The fiscal impact of Brazil’s pandemic response measures amounts to 8.4% of GDP, which the government stresses places Brazil above the average spending on the pandemic amongst both developed countries (average 7.1%) and emerging economies (4.3%).

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