New minimum wage of $220 from 1st January; impact is $800 mm

President Jair Bolsonaro said he would sign on Wednesday a provisional measure increasing the minimum wage in the country to R$1,110, effective from 1st January, 2021. The readjustment represents an increase of 5.26% over the current amount. The impact on public accounts with the readjustment will be approximately R$4 bn ($800 mm).

Source: UOL Economia

Impostometer takes first annual fall: $89.5 bn less in 2020

For the first time since it was created, in 2005, the Impostômetro of the Commercial Association of São Paulo (ACSP) registered an annual drop in tax collection in the country. The entity estimates that Brazil will end the year with a 17.85% reduction, or R$447 billion ($89.5 bn), in municipal, state and federal tax collection compared to 2019. Last year, the amount collected was R$ 2.5 trillion ($500 bn).

Source: Isto É

Minas Gerais signs $560 bn agreement with UK for green development

Minas adherence to the agreement will generate additional revenue and jobs, according to Ambassador Liz Davidson’s assessment. The UK wants to cut emissions by 68% by 2030. Brazil has enormous comparative advantages to position itself as a green economy. Low-carbon measures would result in a cumulative increase of R$2.8 trillion ($560 bn) in 2030, and 2 million more jobs in 2030, mainly in industry and services,” he said.

Source: Portal Solar

AGU charges more than $520 mm from Amazonian deforesters

In recent months, the Amazon Advocacy Task Force (AGU) has filed 114 public civil actions to charge more than R$2.6 billion ($520 mm) in environmental violations. The lawsuits reached approximately 230 accused of the devastation of 135,000 hectares of Legal Amazonia. Justice has ordered the blocking of more than R$776 million ($155 mm) in assets and values of large deforesters.

Source: Veja

Illegal wood seized by PRF this year exceeds by 95% that of 2019

The Federal Highway Police (PRF) seized almost twice as much illegal timber as in 2019. The Federal Police (PF) confiscated the equivalent of R$ 427.7 million ($85 mm) from groups or people caught committing some type of environmental crime – a figure 81% higher than that collected for the same reasons in 2019. According to the PRF’s director general, Eduardo Aggio, more than 36,997,000 m3 of illegal wood were seized from federal highways from January to November of this year.

Source: Money Times

Impact of covid on public accounts amounts to $124bn

The Ministry of Economy has released an analysis of the fiscal impact of the measures to confront covid-19. Official data show that R$620.5 billion ($124 bn) is the sum of the impact on the primary result. According to the ministry, the measures to increase spending total R$594.2 billion ($118.8 bn), while those to reduce revenues reach R$26.2 billion ($5.2 bn).

Source: Valor Investe

CAF lends $350 mm to Brazil for fiscal actions in the pandemic

The CAF (Latin American Development Bank) today announced the signing of a $350 mm (R$1.8 billion) loan from Brazil for fiscal actions in response to the Covid-19 crisis. The financing will complement the fiscal initiatives already underway in the country and will reinforce counter-cyclical economic measures aimed at reducing the effects of the coronavirus pandemic in Brazil.

Source: UOL Economia