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To Prevent Rebellions, Brazilian Government Releases Half a Billion Reais to Congress

08/26/2015 - 09h29

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RANIER BRAGON
FROM BRASÍLIA

In the midst of a political and economic crisis, the government announced on Tuesday (25) the release of funds to contain the threat of new revolts in the National Congress.

Civil aviation minister Eliseu Padilha, who currently acts as a mediator between Congress and the government, went to Congress to announce the release of half a billion reais (USD $138 million) for amendments the representatives made to the national budget for 2015.

The government had been holding back these funds due to the current economic difficulties, which was causing great anxiety amongst the members of Congress.

"This is money in the veins of the economy," said Padilha. In general, the amendments are for small projects and investments in the electoral strongholds of the congressional representatives and senators.

Padilha said he had won an "arm wrestle" with the government's economic team. "We've already paid R$300 million (USD $83 million), now we have R$500 million (USD $138 million) and afterwards we will have more," he said.

With the announcement, the government expects the new Budget Guideline Law to be approved, which defines parameters for the creation of next year's budget. It should have gone through by the start of July.

Padilha also negotiated with congressional representatives the approval of a project which will allow the government to pay for all the amendments made by representatives in previous years which never got off the ground, the so-called "leftover payments". The value stands at around R$3.8 billion (USD $1.1 billion).

The funds had been the cause of a dispute between Padilha and finance minister Joaquim Levy. Padilha, representing Vice-president Michel Temer, had promised Congress that he would obtain the funds. However, the technical team at the Ministry of Finance vetoed their release.

Translated by TOM GATEHOUSE

Read the article in the original language

Marcelo Camargo/Agência Brasil
Civil Aviation minister Eliseu Padilha acts as a mediator between Congress and the government
Civil Aviation minister Eliseu Padilha acts as a mediator between Congress and the government

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