LatinNews Daily - 24 November 2022

In brief: Brazil’s Lula struggling to get full support for spending waiver

*The transition team of Brazil’s president-elect Luiz Inácio Lula da Silva (Partido dos Trabalhadores, PT) has struggled to get the support that it needs in congress to approve a constitutional amendment (PEC) that would allow the new administration to spend more than is stipulated by the so-called constitutional ceiling – a rule approved in 2016 that limits annual growth in government spending to the rate of inflation. According to Brazilian newspapers, Lula’s team is trying to negotiate a waiver to spend beyond the ceiling for a total four years, but many legislators insist that the waiver should have a maximum duration of two years. Newspaper Folha de S. Paulo wrote that some PT members seem resigned to this, although the party has not made any official statement regarding this issue. Lula needs the support of 309 of Brazil’s 513 federal deputies and 49 of the 81 senators to approve the PEC. Without approval of the PEC, the president would not be able to maintain the value of welfare programme Auxílio Brasil payments at R$600 (US$112) per month next year, one of his campaign promises.

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