Brazil can use war protocol if necessary, says Economy Minister
RIO DE JANEIRO, BRAZIL – If the conflict between Russia and Ukraine continues, the Brazilian government can activate the war protocol, with a special budget that includes exceptions to the spending cap, said the Minister of Economy, Paulo Guedes, on March 15. In a ceremony at the presidential palace, Guedes declared that Brazil has recovered from the covid-19 pandemic and is more prepared than other countries.
According to the minister, the constitutional amendment that created the new fiscal framework, enacted by Parliament last year, allowed the country to use an extraordinary appropriations budget (outside the spending cap) in situations of calamity. First used in 2020, the tool was called the War Budget at the onset of the pandemic.
“We are prepared. We have the war protocol ready, the emergency PEC [Proposed Amendment to the Constitution], the emergency button, and the exception to the cap if necessary. We are prepared for any war,” said the minister during the launch of economic measures for the rural sector and the foreign exchange market.
Guedes pointed out that Brazil has recovered from the impacts of the pandemic and is doing better than other countries, having reduced to zero the primary deficit of the public sector last year (negative result without interest on public debt).
With information from Agência Brasil
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