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Weekly Report - 11 November 2021 (WR-21-45)
BRAZIL: Reform advances as horse-trading takes centre-stage
A constitutional reform proposal (PEC) tabled by the Brazilian government is moving through congress. If and when it is fully approved, the ‘PEC dos precatórios’ will free up fiscal space next year, and notably allow the executive led by President Jair Bolsonaro to finance a new social programme, ‘Auxílio Brasil’. However, the reform is criticised for being fiscally irresponsible; and the seemingly underhand methods used to secure its approval have come under scrutiny and exposed the government to further criticism.
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