RIO DE JANEIRO: Brazil's government faces as much as 74 billion reais ($40 billion) of unbudgeted expenses in 2012 stemming from lawsuits awaiting judgement at the country's Supreme Court, the Correio Brasilense newspaper reported on Sunday.
The principal risk to the government comes from a case that will determine if workers who take early retirement on a partial pension can return to work and eventually qualify for a full pension, the newspaper said, citing a report from the country's Attorney General's office, which represents the government in court.
If the court rules in favor of the retirees, the government faces an estimated 50 billion reais ($27 billion) of new payments to about 500,000 workers, Correio Brasilense, the principal paper in Brazil's capital, Brasilia, reported.
One Supreme Court judge has already ruled in favor of allowing workers to transform their partial benefits into full benefits by returning to work after retirement, the paper said.
The case comes as tension grows between the government of President Dilma Rousseff and the country's judges. Rousseff has resisted a pay increase for judges in the 2012 budget.
A spokeswoman for the attorney general's office told Reuters that officials were unavailable for comment on New Year's day. Reuters calls to the press office of Brazil's planning ministry were not answered.
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