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By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Last minute talks and negotiations were made this weekend in Brazil’s capital, Brasilia, as the government of President Michel Temer tries to guarantee that the Chamber of Deputies will vote on a Constitutional Amendment which would impose a ceiling on public federal spending.

Brazil, Brasilia,President Temer hosts dinner to persuade allied Representatives to vote on Congressional amendment which would limit federal spending.
President Temer hosts dinner to persuade allied Representatives to vote on Constitutional amendment which would limit federal spending, photo by Beto Barata/PR.

“We expect a significant quorum and we will pass the project,” Government Secretary, Geddel Vieira Lima, responsible for Congressional affairs told journalists on Sunday, October 9th, after a dinner for Congressional Representatives hosted by President Temer. “I think we have more than 350 votes,” he added.

The amendment calls for federal spending to be limited to a ceiling of the previous year’s budget, adjusted by the inflation measured by the Consumer Price Index (IPCA). The amendment would impose the ceiling on federal spending for the next twenty years.

According to the Administration, the Constitutional Amendment project is the first step to overcoming Brazil’s economic crisis. The Minister of Finance, Henrique Meirelles, has said that without this fiscal adjustment the Brazilian economy will not be able to move forward and recover.

“The Brazilian government spends too much and spends (money) badly. The state will have to seek efficiency,” Director of Budget and Financial Overseeing for the Chamber Chamber, Ricardo Volpe told Agencia Brasil.

Volpe, who helped prepare the project believes that a fiscal adjustment in the current economic system is inevitable, but the way this adjustment is conducted is up to Congress. “It will be via inflation, or an abrupt adjustment cutting various costs immediately or via a gradual adjustment, which is this amendment,” he says.

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1 COMMENT

  1. Just look at the mess Obama has caused. He has spent more money then all the past Presidents being the worst President in U.S. hiztory. Now he is trying to get Killarney Clinton in to continue the trend of distrustful and lies as both are guilty of. Don’t let it happen in Brazil,all the people in USA are going to be facing tax increases,higher gas prices,higher food electric etc. The idea of limiting spending is a Great idea,and would keep costs down for the people,I vote yes!

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