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14/12/2017 - 12:40hs

Brazil’s 2018 budget set at USD 1 trillion

The National Congress approved next year’s budget on Wednesday evening. A special election campaigns fund will account for USD 513 million out of the total amount.

Brasília – Brazil’s National Congress approved on Wednesday evening (13) the 2018 Budget Bill, with BRL 3.57 trillion (USD 1.07 trillion) in spending provisions, including government debt refinancing payments. Approved in a symbolic vote after close to two hours’ worth of discussions, the 2018 Budget includes an earmarked BRL 1.716 billion (USD 518.5 million) for a special campaigns fund (Fundo Especial de Financiamento de Campanha - FEFC) for the 2018 elections.

This is the first Budget passed since expenditure cap constitutional amendment (Emenda Constitucional do Teto de Gastos) that prohibits government spending from exceeding the prior year’s inflation rate, effective for a 20-year period. The Budget Bill is now pending presidential sanction.

The budget draft works with a BRL 157 billion (USD 47.4 billion) 2018 primary deficit forecast, unlike the budget allocation law (Lei de Diretrizes Orçamentárias - LDO), which included a BRL 159 billion (USD 48 billion) deficit forecast. Gross Domestic Product (GDP) is seen growing 2.5% next year. The minimum wage is set at BRL 965 (USD 291), up BRL 28 (USD 8) from this year’s BRL 937 (USD 283) base wage.

*Translated by Gabriel Pomerancblum

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