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Brazil economy ministry says it opposes any proposal to weaken spending cap rule - Metro US

Brazil economy ministry says it opposes any proposal to weaken spending cap rule

FILE PHOTO: Brazil's Economy Minister Paulo Guedes speaks next Brazil's President Jair Bolsonaro during a press statement at the Alvorada Palace in Brasilia

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)

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