The administration of Brazilian President Jair Bolsonaro on Wednesday presented the “framework” document for its 2021 federal budget, featuring “flexible” spending, revenue and deficit goals for the first time. The document was formally transmitted to Congress Wednesday afternoon. In August, the administration will present a detailed budget proposal. In Wednesday’s document, the administration said it was impossible to set firm goals for next year because of the coronavirus crisis, which has made it difficult to form economic projections. Instead, the government will closely monitor spending and revenues, adjusting goals every 15 days during the course of 2021. Specific goals have been an annual feature of Brazilian budget exercises since the early 1990s, when International Monetary Fund loans depended on compliance with fiscal austerity policies. Goals became mandatory under the 2000 Fiscal Responsibility Law. However, Congress in March declared a “state of calamity” because of the coronavirus, suspending the need to meet fiscal goals.
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