The Brazilian Chamber of Deputies on Tuesday night gave its second-round approval to a constitutional amendment setting a cap on government spending for the next 20 years. The proposal must now be considered by the Senate. As a constitutional amendment, the proposal requires two separate votes in each house of Congress. The proposal would cap increases in annual government spending to no more than previous-year inflation. The system would remain in force for 20 years, but with a review of the capping mechanism after 10 years. The proposal was brought forward by President Michel Temer as a way to rein in out-of-control government spending.
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