BRASILIA (Reuters) – Brazil’s economy ministry said in a statement on Monday that it is against any proposal that aims to make the country’s spending ceiling more flexible, even if only temporarily.
The spending cap is a key fiscal rule limiting the growth in public spending to the previous year’s rate of inflation. Earlier Monday, local media reported that some budgets could be exempt for a year from the ceiling. Many economists expect the ceiling to be broken soon due to record spending.
(Reporting by Jamie McGeever; editing by Stephen Eisenhammer)