Temer Proposes Spending Cap in Effort to Fix Brazil’s Budget
- Acting president presented the amendment to party leaders
- Government aims to reduce expenses and control debt levels
Brazil Is Unraveling Before Our Eyes
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Brazil’s Acting President Michel Temer proposed to legislators on Wednesday spending caps that are designed to shrink a near-record budget deficit and restore investor confidence in Latin America’s largest economy.
The proposal would amend the constitution, essentially freezing current government expenditures in inflation-adjusted terms through 2036, though there would be the possibility of adjustments after the first 10 years, according to a statement from the Finance Ministry. Any increase in revenue stemming from an economic recovery would go to narrow the budget deficit instead of more spending.