Brazil’s Congress late Wednesday voted to maintain legislation increasing mandatory welfare spending in a major defeat for the Administration of President Jair Bolsonaro. The President had vetoed the original bill. Wednesday night, both houses of Congress voted to override his veto. According to the Economy Ministry, the legislation will add R$23.3 billion to annual spending. Treasury Secretary Mansueto Almeida said the additional spending will compromise the government’s ability to meet a constitutionally set spending ceiling. He said the government will have to cut infrastructure investments and operational spending in order to accommodate the new mandatory welfare costs.
Link to government news agency release.