The federal government is once again facing the possibility of carrying out fiscal pedals. To prevent this from happening, however, Bolsonaro Administration’s economic team is trying Congressional authorization to cover a budget deficit of $248 billion.
Known as the “golden rule,” the Fiscal Responsibility Law prevents the government from spending higher than allowed by the collection or issuing Treasury bills to supplement revenue.
To avoid pedaling, the minister Paulo Guedes requested the authorization of the Congress, which may legalize the movement. Critics, however, estimate that the maneuver would result in R $23 billion more in interest for the Budget.