The Brazilian Chamber of Deputies has approved a bill that puts an end to the public “spending ceiling” and creates new, more flexible budget rules, a win for the president Lula da Silva.
The text, approved by 379 votes against 64, can help the leftist government to fulfill its promise of ambitious social programs and a vast program of investment in infrastructure.
The new rules, which will already affect next year’s budget, put an end to the spending cap introduced at the end of 2016, under the center-right government of the former president. Michel Temer. They allow a greater flexibility in terms of spending, which can increase at the rate of tax revenue.
At the same time, it guarantees a certain budgetary rigor, limiting the increase in expenditures to 70% of the increase in State revenue. The project had already passed through the Chamber of Deputies in May, but a new vote was necessary for its adoption, after modifications introduced by the Senate.
The beginning of Lula’s third term, who already governed between 2003 and 2010, was marked by the reestablishment of social programs, such as the Bolsa Família, a subsidy paid to the poorest families. The government has also strengthened state environmental conservation agencies, which suffered major budget cuts under the far-right former president. Jair Bolsonaro.