Brazil's lower house speaker says welfare program could break country's spending ceiling

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Brazil's lower house speaker says welfare program could break country's spending ceiling

President of Brazil's Lower House Rodrigo Pacheco is seen after a meeting with the Brazil Economy Minister Luiz Eduardo Ramos, Brazilian Minister of Secretariat of Government and president of Brazil’s Senate Arthur Lira in Brasilia, Brazil, February 12, 2021. SAO PAULO, Oct 19 Reuters - Brazilian Lower House Speaker Arthur Lira revealed on Monday evening that he'd be open to discuss the introduction of a welfare program that could break the country's spending ceiling.

Lira said in an interview with Veja Magazine that Brazil cannot put social responsibility and the spending ceiling above the fiscal outcomes of the coronavirus pandemic. More than 600,000 people have died from COVID - 19 in the South American nation.

The social aspect is very worrying. Lira said we can't just focus on fiscal responsibility, the spending ceiling and budget. That is what the lower house and Congress have been doing, trying to put the spending ceiling above people who are below the poverty line. The remarks from Lira show a change in his view on the Spending Cap. An ally of President Jair Bolsonaro, the lower house speaker has always spoken against breaking the spending ceiling.

Reuters reported on Monday that Brazil's government is considering combining pandemic relief payments and Bolsa Familia welfare programs into a monthly stipend of 300 Rs $54.42 next year, according to a source familiar with the matter.