Brazil’s government on Monday ordered an additional budget freeze of R$10 billion in order to comply with the current 2015 federal budget law. The freeze applies to an array of government expenditures through December 31. The action comes in addition to two previous budget freezes this year adding up to R$80 billion. The current budget law limits the 2015 budget deficit to no more than R$51.8 billion. The government has asked Congress to pass a new law elevating the deficit to nearly $120 billion. Congress is due to vote on the proposal later this week. If it passes, the government could suspend a portion of the budget freeze. Some economists have said the latest budget freeze could leave many government services paralyzed.
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