January 21, 2021

Bolsonaro sanctions the 2020 Budget without vetoes and electoral fund

The president of Brazil, Jair Bolsonaro, sanctioned, without vetoes and with an electoral fund, the Budget of the Government for 2020, approved last December by Congress and that foresees expenses for a total of 3.68 billion reais (about 865.384 millions of dollars).

In a message posted on his Twitter account, the Secretary of the General Secretariat, Jorge Oliveira, announced this morning that Bolsonaro, in power since January 1, 2019, sanctioned the Annual Budget Law, which estimates the income and sets the expenses of the Brazilian Government for the year.

The 2020 Budget foresees an economic growth of 2.32% of the Gross Domestic Product (GDP) and the creation of the so-called “Electoral Fund”, intended to finance the political campaigns for municipal elections that will be held next October, for a value of 2,000 million reais (about 480 million dollars).

The project, prepared by the Government, is calculated on the basis that the country’s inflation will remain under control, at around 3.5% per year, a rate that, if confirmed, would be within the established target, which is 4%, with a maximum ceiling of 5.5%.

It also advances that the primary deficit of the public sector, a chronic problem in Brazil, will remain high and will reach 124,000 million reais in 2020 (about 29,807 million dollars).

The projections in the approved budget for 2020 are optimistic and suggest that the greater economy of South America will react to the structural reforms carried out by the Government of the ultra-rightist Bolsonaro in his first year at the helm of the Presidency.

The calculations on the project estimate that the Brazilian GDP will grow by 2.32% this year, compared to the 1% expected for 2019 and that it was the same growth recorded in both 2017 and 2018.

Bolsonaro, a captain of the Army reserve, promoted in his first year of Government a liberal economic program based on privatizations, concessions and structural reforms, with which he hopes to reduce the size of the State and revive the country’s economy after the hard recession suffered in 2015 and 2016, when the Brazilian GDP collapsed 7%.


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