Brazil’s Senate to vote on Bolsonaro pre-election spending package
By Ricardo Brito and Marcela Ayres
BRASILIA (Reuters) -Excessive gas costs ensuing from the Ukraine struggle have created an financial emergency in Brazil that justifies an enormous help bundle for self-employed truckers and others, the senator behind the government-backed proposal mentioned on Wednesday as he unveiled the measure.
The proposed constitutional modification, scheduled to be voted on Thursday, is seen as essential to boosting assist for President Jair Bolsonaro, who faces an uphill battle to win re-election in October.
Along with the 1,000 reais ($192.38) help for truckers, the invoice additionally seeks to extend by 50% the quantity paid within the Auxilio Brasil social welfare program, and enhance a gasoline voucher.
Senator Fernando Bezerra mentioned the worldwide spike in vitality costs gave authorized justification for bypassing a constitutional spending cap and delivering funds to truckers, a key Bolsonaro constituency.
The state of emergency “won’t be an open door for brand spanking new bills,” Bezerra mentioned in a press convention, noting the proposal has sufficient assist for a Senate vote. It will nonetheless require approval within the decrease home for passage.
In response to Bezerra, the overall affect of the brand new advantages is round 38.75 billion reais ($7.5 billion).
Brazilian Treasury Secretary Paulo Valle acknowledged throughout a separate convention on Wednesday that the spending proposal, together with a latest tax reduce on gasoline costs, will negatively affect the funds by $55.5 billion this 12 months.
However he mentioned the associated fee needs to be offset by revenue from the privatization of energy firm Eletrobras, and from dividends by the state-owned oil agency Petrobras and improvement financial institution BNDES.
Subsequently, the brand new measures don’t change the federal government’s dedication to fiscal consolidation, mentioned Valle, including that the 65 billion reais major deficit forecast for this 12 months stays unchanged from Could.
($1 = 5.1981 reais)
(Reporting by Ricardo Brito and Marcela Ayres; Writing by Peter Frontini; Modifying by Aurora Ellis and Richard Chang)
