Economics versus Politics: Who will win Brazil’s budget impasse?

The standoff between the economic team and Congress over the 2021 Budget is expected to end with President Bolsonaro accepting only part of Minister Guedes' calls for more austerity.

RIO DE JANEIRO, BRAZIL - Bolsonaro has agreed to follow Economic Minister Guedes' advice and partially veto this year's budget bill to cut mandatory Social Security spending proposed by the legislature.

However, in line with legislators and his government's political wing, Bolsonaro intends to keep resources for construction and funds earmarked by members of parliament. Therefore, the cut's size will hardly be what the Ministry of Economic is defending, said four people with knowledge of the matter who requested anonymity because the discussions are not public.

Two people said the economic team defends re-establishing between R$20 . . .

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