Flexibilization of budgetary requirements and fiscal responsibility during the COVID-19 pandemic

The Federal Supreme Court granted a preliminary injunction, in the proceedings of Direct Action for Unconstitutionality nº 6357, proposed by President Bolsonaro, to remove the requirement to demonstrate budgetary adequacy and compensation in relation to the creation or expansion of public programs to face the current crisis. During the state of public calamity, all federal entities may benefit from the increased flexibility of fiscal and budgetary requirements. This measure allows federal entities to increase unpredicted public expenditure to tackle the negative effects of the spread of COVID-19. It also grants additional judicial security since no penalties shall arise from this necessary emergency public expenditure.

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