Economics
Brazil Senate Backs Covid Aid With Fiscal Fix as Pandemic Soars
- Bill now moves to lower house, with vote expected next week
- House speaker says payments are no threat to spending cap rule
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Brazil’s senate backed a $7.8 billion round of Covid aid for the poor as a new wave of the pandemic batters the economy and pushes the health system to the brink of collapse.
The plan to revive last year’s cash handout program is part of a constitutional amendment that includes compensatory fiscal measures demanded by Economy Minister Paulo Guedes to show the government remains committed to austerity after a record budget deficit in 2020.