Rousseff tightens government spending cap

Nondeferrable recurring costs the federal budget will be limited to a monthly one-eighteenth of the approved amounts outlined by the 2015 Budget Directive (LDO) until it comes into force.

The ratio was changed by President Dilma Rousseff Thursday (Jan. 8) from a previous one-twelfth a month.

Spending caps are a measure to cut non-mandatory costs in the federal administration. It applies to both basic upkeep and investment costs, except for cost areas protected by the constitution – including payroll, pension, and welfare benefits – which are not affected by the cut.

Translated by Mayra Borges