Brazil
News

Brazil increases 2023 spending cap by nearly US$30bn

Bnamericas
Brazil increases 2023 spending cap by nearly US$30bn

Brazil’s senate and lower house approved a constitutional amendment to increase the spending cap by 145bn reais (US$27.8bn) next year, when Luiz Inácio Lula da Silva will assume the presidency.

The approval seems a compromise mollifying investors, because earlier this month the senate’s constitution and justice committee had approved the same increase for both 2023 and 2024.

Lula’s transition team requested extra spending of 175bn reais a year above the cap for the four-year government term, which will start January 1.

Current rules limit increases in government spending to the rate of inflation.

The constitutional amendment is aimed at maintaining social programs.

Investors have been anxious to receive signals about Lula’s fiscal policies.

Fernando Haddad and Aloizio Mercadante, who are close to Lula, were recently appointed finance minister and president of development bank BNDES. Investors had preferred economists with more technical backgrounds.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

Other companies

Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.

  • Company: Logespec SPA  (Logespec)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Constructora Urbana, S.A.  (Cusa)
  • Panamanian construction firm Constructora Urbana S.A. (Cusa) is primarily involved in the design and construction of highways, airports, ports, railway, infrastructure, sewerage...