Brazil's Real Advances Ahead of Revised Fiscal Target Vote
- If measure not approved, president risks breaching fiscal law
- In separate vote, committee set to rule on Cunha allegations
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Brazil’s real rose ahead of a planned congressional vote on the country’s fiscal target, which is key to avoiding a forced government spending shutdown.
The government is working to gather support among lawmakers to get approval to change this year’s fiscal target, allowing it to end the year with a primary deficit of 119 billion reais ($31 billion). The vote could happen as early as Wednesday. If the change isn’t approved, President Dilma Rousseff faces a tough choice: either breach budget laws, which could be grounds for a new impeachment request, or freeze spending. Planning Minister Nelson Barbosa said a failure to pass the measure would paralyze the government, newspaper Folha de S. Paulo reported.