Minister Guedes: Brazil can trigger war protocol if necessary
The Brazilian government may trigger the war protocol, using a special budget that includes exceptions to the spending cap, if the war between Russia and Ukraine protracts, Economy Minister Paulo Guedes said on Tuesday (Mar. 15). In a ceremony at the presidential palace, he declared Brazil had recovered from the COVID-19 pandemic effects and it is better prepared than other countries.
According to the minister, the constitutional amendment that created the new fiscal framework, which was enacted by Congress last year, has given the country the possibility to activate a budget, including extraordinary credits - beyond the spending cap - in case of state of calamity. First used in 2020, at the beginning of the COVID-19 pandemic, the tool has been called the War Budget.
"We are ready. We have prepared the war protocol, we have the Emergency Constitutional Ammendment Proposal, we have an emergency button, we have exceptions to the spending cap, if necessary. We are prepared for any war, declared the minister during the launch of economic measures for the rural sector, and the exchange market.
Guedes pointed out Brazil has recovered from the impacts of the pandemic and is better off than other countries, having practically zeroed the public sector's primary deficit (the fiscal deficit for the current year minus interest payments on previous borrowings) last year.
