Brazil's COVID-19 emergency spending need not meet spending cap rules

BRASILIA: Brazil can spend 20 billion reais on buying COVID-19 vaccines and 44 bln reais on renewed cash transfers to the poor this year, Economy Minister Paulo Guedes said on Tuesday, adding that emergency crisis-fighting outlays do not necessarily have to meet the government's spending cap rules.

Speaking in an online address following the release of strong jobs figures for February, Guedes said that even if this expenditure does not fall under the spending cap, it must have "defined limits".

The Independent Fiscal Institute (IFI) watchdog said on Monday that the government is on course this year to break the spending cap, its most important budgetary rule which economy ministry officials have described as a fiscal "super anchor".