AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
World

Brazil has no plans to extend emergency budget, aid to poor into 2021

  • The emergency spending and aid to low-income families triggered by the pandemic will end on Dec. 31.
  • Confusion over how the government will fund a proposed new welfare program "Renda Cidada" next year for millions of Brazilian families.
Published October 8, 2020

BRASILIA: Brazil has no plans to extend emergency aid payments to the poor or extend the government's pandemic-fighting 'war budget' into next year, Economy Minister Paulo Guedes said on Wednesday.

Speaking to reporters in Brasilia, Guedes was responding to rising speculation and local media reports that either or both could be extended beyond the Dec. 31 deadline to help mitigate the ongoing economic and social impact of the pandemic.

Guedes has been among the most vocal of all government officials who have insisted that the emergency spending and aid to low-income families triggered by the pandemic will end on Dec. 31, and that efforts to reduce the record deficit and debt begin in earnest next year.

Rodrigo Maia, the powerful speaker of Brazil's lower house who has frequently clashed with Guedes, on Wednesday backed the minister's position that there should be no extension of the emergency measures into next year.

"The Chamber's position is the same," Maia tweeted along with a link to the Reuters story on Guedes.

Tensions between the two are beginning to thaw following a series of public spats. A few days ago, Guedes accused Maia of being allied to the left to stop privatizations, to which Maia responded that the minister was "unbalanced."

Confusion over how the government will fund a proposed new welfare program "Renda Cidada" next year for millions of Brazilian families, without breaking its spending cap fiscal rule, has weighed heavily on local markets recently.

Investors say it is a key reason behind the surge in long-term interest rates relative to short-term rates, as it has sowed doubt surrounding the government's long-term commitment to reining in its record deficit and debt.

Comments

Comments are closed.