Bolsonaro vetoes public sector pay rise

21 Aug 20

A £16bn pay rise for Brazilian civil servants has been blocked by the president and the government’s lower house, amid the country’s public finances suffering because of Covid-19.





President Jair Bolsonaro had initially vetoed the move, but Brazil’s senate overturned his decision, meaning the issue was passed to the country’s congress, which voted 316 to 156 in favour of upholding the president’s veto.

The matter is now finished, representing a victory for Bolsonaro, who had said congress siding with the senate would have made it “impossible” to govern.

He estimated the cost of doing so would have been 120bn reais (£16.4bn).

Government revenue in July fell to its lowest level since 2009 as the pandemic continued to hit the economy.

The federal government received 116bn reais (£15.8bn), down 17.7% on the same month in 2019.

Brazil is facing the second largest outbreak of Covid-19 in the world, behind only the US, with more than 112,000 people already having died.

Early in the pandemic, the government introduced a guaranteed minimum income scheme for informal workers whose earnings had dropped amid the economic slowdown.

Bolsonaro is expected to announce an extension to the scheme, albeit with smaller transfers than the 600 reais (£82) each month currently being paid.

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