Brazil has passed a constitutional amendment that raises a government spending cap by at least R$145bn (US$28bn), allowing leftwing president-elect Luiz Inácio Lula da Silva to fulfil campaign pledges to provide extra funds for welfare and infrastructure.
The bill, approved by a supermajority of lawmakers in Brasília on Wednesday, will authorise a one-year override of a fiscal rule limiting increases in state expenditures.
A big chunk of the extra cash will bankroll Lula’s promise to maintain at R$600 (US$115) a monthly cash transfer called Bolsa Familia (“family allowance”), received by the poorest 20mn households.
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