Amid Protests, Brazil Passes 20-Year Austerity Plan
News Brief
Damaged by a two-year recession, corruption scandals and protests at home, Latin America's largest economy turned to constitutional reforms to control its rising debt and spending.
Brazil's Senate voted 53-16 in favor of a 20-year cap on spending increases for social welfare programs. The House has already passed the bill, which becomes law.
The constitutional amendment, PEC 55, will cap government spending on health care, education and social security through 2036 at current rates adjusted for inflation.
Supporters said it will create certainty in fiscal budgets, control rising debt, and attract foreign investment. They said the amendment also guarantees a floor for the spending programs.
Opponents, however, said the spending caps would hurt the poorest and lock fu...