Brazil’s government has been hit by the resignation of top officials in its economy ministry, as mounting concerns that Brasília will circumvent fiscal rules in order to boost welfare payments rippled through its financial markets.
With his popularity flagging ahead of elections next year, President Jair Bolsonaro wants to expand a cash transfer programme for the poorest families in Latin America’s most populous nation.
But the possibility that a constitutional cap on public expenditure might be breached or bypassed in order to do so has alarmed investors and reportedly fuelled disagreements within the administration.
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