Despite Austerity, Brazil's Wallet Looks Emptier Than Ever Before
Pedestrians pass in front of street vendors in downtown Rio de Janeiro, Brazil, on Tuesday, Sept. 26, 2017.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Brazil has been adopting fiscal austerity measures for the better part of four years. Yet its fiscal situation is even more prickly than before.
As things stand today, the government next year will break a constitutional clause called the Golden Rule, which stipulates that it can’t issue new debt to finance current expenditures but only to fund investments. The shortfall? A staggering 150 to 200 billion reais next year.