Bolsonaro Invokes Virus Calamity to Miss Brazil Budget Goal

(Bloomberg) -- Brazilian President Jair Bolsonaro asked Congress to declare a state of public calamity that would allow his government to miss this year’s fiscal target as the coronavirus crisis hits Latin America’s largest economy.

If approved, the measure will remain in effect through the end of the year, according to a statement from the president’s office.

There’s a “need to increase public spending to protect Brazilians’ health and jobs,” the government said in the statement, adding that public revenue is also expected to drop due to the crisis.

Brazil’s central government targets a primary fiscal deficit of 124 billion reais ($25 billion) this year, which excludes debt service. By declaring public calamity, Congress would release the government from meeting that target, although the administration remains bound to a constitutional cap that has frozen public spending for a decade, only allowing for inflation adjustment.

Senate President Davi Alcolumbre called Bolsonaro’s proposal an “important measure” ensuring resources to attend to the population and said it would have “top priority” in Congress.

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