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LatinNews Daily - 16 December 2020

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In brief: Brazil updates 2021 budgetary guidelines

* Brazil’s economy ministry has revised some of the figures on which its draft budget for 2021 is based, as budgetary legislation is yet to be approved by congress and the economic outlook has shifted since the government first sent the bill for the budgetary guideline laws (LDO) to congress in April. In an update to the LDO bill sent to congress and signed by Economy Minister Paulo Guedes, the economy ministry sets a primary deficit target of R$247.1bn (US$48.62bn) for the central government next year. Projections are based on a forecast of 3.2% GDP growth and 3.2% inflation, along with a monthly minimum wage of R$1,088. This is up from the R$1,067 minimum wage outlined in the draft budget submitted in August, an increase which reflects the recent rise in inflation. Brazil’s congress is due to vote on the LDO bill today (16 December) – almost six months late, and a necessary step towards approving next year’s budget.