Category: Public policy

Information related to political affairs that have an impact on Brazil’s economic development.

Sao Paulo preparing plan for phased economic opening after quarantine

A phased plan to reopen Sao Paulo’s economy should be announced today (Wednesday 22 April) by the state government, to be implemented as of May 11th. When the quarantine was extended last week, the Covid-19 Crisis Management Committee began to focus on a plan to determine which sectors and which regions of the State of São Paulo could gradually return to operation.

Brazil govt proposes $7.7 bn transfer to states

Brazil’s government proposed the direct transfer of 40 billion reais ($7.7 billion) to states and municipalities to help compensate them for the loss of revenue due to the coronavirus crisis, a counter proposal to an 80 billion reais aid package approved by the lower house of Congress last Monday.

Bolsonaro announces additional $22bn in spending to preserve jobs

Brazilian President Jair Bolsonaro on Wednesday announced new steps to address the economic impact of the coronavirus pandemic in a telephonic conversation with his US counterpart Donald Trump. Bolsonaro said, “I spoke with Donald Trump and exchanged information about a problem that is global,” while promising an additional 110 billion reais ($22 billion) in spending to “preserve jobs” and aid states and municipalities, according to the media report.

Brazil: coronavirus fears weaken Amazon protection ahead of fire season

The coronavirus pandemic is weakening Brazilian state protection for the Amazon rainforest and its people ahead of this year’s fire season, according to indigenous communities and international NGOs. Fewer law enforcement officials are going out into the field and monitoring missions are being scaled back, opening the door for more land invasions and forest clearance, they warn.

STF approves allocation of $320mn of Lava Jato fund to fight coronavirus

Supreme Federal Court (STF), authorized the allocation of 1.6 billion reais ($ 320 million) of a fund of resources recovered by the Lava Jato operation for actions to contain, combat and mitigate the new coronavirus, as the disease advances across the country. The Chamber of Deputies, the Senate and the Union agreed with the proposal, due to the significance of the situation caused by the coronavirus pandemic.

Economy Ministry announces $ 2 billion for workers

The federal government decided to compensate part of the income of workers who may have their wages reduced due to the coronavirus crisis. The measure aims to help workers who may have their income cut in half at this time of economic slowdown. The payment must be released for three or four months and can benefit up to 11 million people. Therefore, it should cost R$ 10 billion ($2 billion) to the Workers’ Support Fund (FAT).

Due to coronavirus, IBGE postpones Demographic Census to 2021

The coronavirus pandemic led IBGE to postpone the completion of the Demographic Census that would begin in August. Part of the funds will be transferred to the Ministry of Health for actions to deal with the health crisis. The original plan foresaw expenses of R$ 3.4 billion ($ 680 million), but the president of IBGE determined a cut of 25% of the amount for the research that will be transferred by the Ministry of Health.

Coronavirus: Brazilian government will use $28bn for emergency actions

According to the government, R$ 147.3 billion ($28 billion) will be used in emergency actions to help the most vulnerable sectors of the economy and groups of citizens, in addition to preventing high unemployment. Companies will be able to postpone, in three months, the payment of Simples Nacional and the deposit of the Guarantee Fund for Length of Service (FGTS). Contributions to Sistema S will be cut in half, and it will be easier to renegotiate credit and receive external inputs.