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Economy Minister Says Aid Bill Does Not Have Net Fiscal Impact

BRAZIL
  • The most recent spending bill that increases the ‘Auxilio Brasil’ program and creates a voucher for truck drivers will be financed with extraordinary tax collections and dividends that came above expectations, Economy Minister Paulo Guedes said in a virtual press conference. (BBG)
    • Guedes added that Bill doesn’t permanently increase government spending
    • “If there is hunger in Brazil, the proposal is not electoral,” he said.
    • Brazilian fiscal sector is strong, Guedes said, adding that tax collections came very strong in June.
  • The economy ministry added that 2022 expenses will be below 2019 levels and the total cost of aid measures will be BRL 57.8B.

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