Brazilian Chamber of Deputies passes constitutional spending limit

The Brazilian Chamber of Deputies on 25 October 2016 approved the PEC do Teto, a constitutional amendment limiting federal government spending increases to the prior year’s inflation rate for the next twenty years (Folha de S. Paulo, Jornal do Brasil). The amendment passed with 359 votes in favor, 116 against, and two abstentions. Constitutional amendments require three-fifths approval, or 308 votes in the Chamber and 49 votes in the Senate, to pass. The amendment is the priority of President Temer's administration, which argues the amendment is necessary to avoid future government insolvency. It will now move to the Senate for further analysis and voting, where Senate President Renan Calheiros (PMDB-AL) expects voting to conclude in November 2016 (Jornal do Brasil). The federal government expects a deficit of US$54.6 billion in 2016 (Folha de S. Paulo).