05-2021 Latin American Economy & Business

Latin American Economy & Business Report

05/2021 - Brazil’s budget deal is made for breaking

On 22 April, the deadline for final approval of this year’s federal government budget, Brazil’s President Jair Bolsonaro appeared to have squared the circle, signing off on a budget bill which preserves a constitutional spending cap while at the same time spreading enough money around to keep the so-called ‘centrão’ group of political parties happy, and on-side with his government. But the deal is politically fragile and could fall apart later this year.

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