We Respect the Spending Ceiling, Says Bolsonaro after Meeting with Mayors and Senate

In a speech, the president signaled advances in the privatization policy of public companies

President Jair Bolsonaro (without a party) said on Wednesday (12) that he respects the government's spending ceiling. He stated that he would seek solutions to unlock the Brazilian economy amid the new coronavirus pandemic.

"We respect the spending ceiling. We want fiscal responsibility. And Brazil can really be one of those countries that will best react to the crisis," he said.

The cap is a constitutional rule that limits the increase in public spending to the previous year's inflation. It was instituted during the term of President Michel Temer (MDB) in 2016. The term is ten years, renewable for another ten years.

Handout picture released by Brazilian Presidency Press Office of President Jair Bolsonaro speaking during a press statement at the Alvorada Palace in Brasilia, on August 12, 2020. (Photo by CAROLINA ANTUNES / BRAZILIAN PRESIDENCY / AFP) - AFP

Speaking in front of the Palácio da Alvorada, the president signaled advances both in the privatization policy and in the presentation of administrative reform. The statements were made after a stampede at the Ministry of Economy.

Before, he had met with ministers, among them Paulo Guedes (Economy), the mayors of the Chamber, Rodrigo Maia (DEM-RJ), and the Senate, Davi Alcolumbre (DEM-AP), and government leaders in Congress.

"Brazil is doing well. The economy is reacting, and we here decided, then, to direct our forces more towards the common good, what we all defend. We want progress, development," said Bolsonaro.

Translated by Kiratiana Freelon

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