Economics
Brazil Lower House Deals $39 Billion Blow to Fiscal Austerity
- Bills on Fundeb, money transfers still have to pass in Senate
- Brazil to have record deficit in 2020 amid coronavirus crisis
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Two bills approved by Brazil’s lower house of congress this week opened the way for more money transfers to states and municipalities which will cost the government almost 200 billion reais ($39 billion).
The constitutional amendment that makes the basic education fund known as Fundeb permanent has an impact of more than 190 billion reais in the budget over the next decade, according to Economy Ministry estimates. The bill, which was approved by the lower house on Tuesday, also orders the government to gradually increase the contributions to the fund to 23%, from a current 10%. It has yet to be analyzed by Senate.