Brazil: Economy asks for additional US$18 billion in 2022, plans average US$74 in Brazil Aid
RIO DE JANEIRO, BRAZIL – The Ministry of Economy on Thursday, December 9, sent an official letter to Congress requesting the inclusion of an additional R$100 (US$18) billion in spending in the 2022 Budget bill. In the same document, the Ministry set R$415 (US$74) as the average benefit of “Auxílio Brasil” (Brazil Aid) to be paid next year.
The adjustment request addressed to the Mixed Budget Committee (CMO) claims that the change is necessary due to a higher projection for inflation.
The vote on the 2022 Budget is scheduled for December 17. The text of rapporteur Hugo Leal was passed in the Committee last Monday, December 6.
According to government calculations, the enacted part of the Court-ordered federal debt proposed constitutional amendment (PEC) will release R$62.2 billion from the spending cap for next year. If the remainder of the proposal is also passed and enacted, the margin should rise to R$106.1 billion.
“Monetary reference simulations were performed, sent and confirmed by the Ministry of Citizenship,” the letter signed by Minister Paulo Guedes points out.
The suggestion also considers that the inflation adjustment for Social Security benefits, unemployment insurance and salary bonuses, among others, will cost the government R$33.5 billion.
Another R$5.5 billion will be needed to cover other mandatory expenses, such as civil servants’ salaries, adjustments in the Agricultural Activity Guarantee Program (Proagro) and subsidies to constitutional funds. “The suggested change refers to mandatory expenses that will inevitably need to be paid next year,” Guedes points out in the document.
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