Brazil’s 2022 Budget Fails to Dispel Fiscal Uncertainty
- Cash transfer program, court-mandated payments still an issue
- Brazil struggles to reimpose fiscal austerity before 2022 vote
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The 2022 budget proposal that President Jair Bolsonaro submitted to congress did little to dispel investor concerns about growing pressures for more public spending in an election year.
The plan, detailed by Finance Secretary Bruno Funchal Tuesday, foresees a major reduction in the primary deficit to 0.5% of GDP, or 49.6 billion reais ($9.6 billion.) That’s well below the 170.5 billion reais initially expected, and less than a third of what economists are forecasting for this year.