One of the trickier aspects of Brazil’s budget is that it is never really fixed in stone at any point in time. Congress approves a budget towards the end of each year that the government is then free to adjust as it feels fit during the course of the next 12 months. Usually, the government sets aside part of the sums allocated for each area of spending, depending on whether it can afford the outlay or not as the year progresses.

The difference this year is that Brazil’s government has decided that rather than setting aside these amounts and possibly spending them later, it has cut some of them altogether. Continue reading »