RIO DE JANEIRO, BRAZIL - The budget bill submitted by the government on Friday, August 30th, anticipates the need for an addition to the borrowing limit of R$367 (US$88.4) billion to cover a number of public expenses, such as social welfare benefits, payment of the "Bolsa Familia" (Family Allowance), unemployment insurance, among others.
The measure depends on Congressional ratification, because of the requirement to comply with the so-called golden rule.
Established by Article 167 of the 1988 Constitution, the golden rule determines that the government may not borrow to finance current expenditures (such as maintenance of public . . .