Brazil’s lower house of congress approved new fiscal rules on Tuesday, finalizing legislation meant to shore up public finances and assuage market concerns about President Luiz Inacio Lula da Silva’s spending plans.
The bill’s passage will pave the way for Lula’s administration to align its 2024 budget plan with the new rules. But the lower house slightly toughened the version approved by the Senate in June, removing a provision that would have allowed the government to spend an additional 40 billion reais .
The rules allow the government to boost spending by a range of 0.6% to 2.5% above the inflation rate, limited to 70% of revenue growth.
France Dernières Nouvelles, France Actualités
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