Brazil: Temer says govt spending cap can be revised in four or five years

President Michel Temer said Thursday (Oct. 13) that the proposed amendment to the Constitution that will set a ceiling for public spending for 20 years can be revised within “four, five or six years” depending on the conditions in the country.

In an interview on Globonews TV channel, the president said: “We decided it would last for 20 years, which is a long period, and could be revised after ten years. Now, what if in four, five, six years, Brazil has grown, tax revenues have increased, can that be changed? Yes, by approving a new constitution amendment to advance this ten-year milestone to four or five.”

Temer says a perception has been disseminated that the law would stifle the economy and that Congress would not be able to change it. “Whoever is in power in ten years from now may forward their own proposals of what they think should be done,” the president said.

Health and education

A constitution amendment bill has been passed by the Chamber of Deputies this week, limiting the pace of public spending growth to the previous year's inflation rate. Opposition lawmakers say the restrictions will lead to reduced investment in health and education.

The president contends that the government wants to prioritize health and education, arguing the spending limit has not been broken down for each specific area in the budget. “Unlike what people may think, there is an overall limit for the government's total expenses. But there are no separate limits for the portion of that which is specifically going into education, health, culture, or justice,” Temer said.

“So when we say the budget can be revised for inflation, it does not mean it cannot be done beyond inflation. We have a vision of focusing on health, education and investment. We have even created a special department for government concessions, and going forward, privatisations, just to create jobs,” he added.

Translated by Mayra Borges

*This story was edited at 11:34 on 14 October to add information.