Economics
Brazil’s Key Fiscal Rule Is In Jeopardy, Economy Minister Warns
- Court-mandated payments would exhaust 2022 budget, Guedes says
- Government seeks congress approval to dilute debts in 10 years
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Brazil runs the risk of breaching its spending cap rule next year as the government struggles with a 60% increase in court-ordered payments and faster inflation, according to Economy Minister Paulo Guedes.
Court rulings against the federal government, and specially in favor of states, will cause such payments to reach 89 billion reais ($17.1 billion) in 2022, exhausting the government’s budget, according to the economy ministry.