RIO DE JANEIRO, BRAZIL - With the boost from higher inflation, governors' coffers are significantly fuller in the run-up to the 2022 election campaign. From January through May of this year, revenue levels already exceeded the same period in 2019, before the Covid 19 pandemic, by US$45.1 billion.
With statutory limits on mandatory spending increases in place through the end of 2021, the trend is for states to take advantage of bulging coffers next year as governors look to curry favor with constituents in an election year after tough times during the pandemic. One of the risk points . . .