Fiscal squeeze

Resumo

Investors, analysts, and economists arebecoming ever more skeptical aboutthe direction of Brazil’s fiscal policy. Ifthe country is to grow sustainably, theonly way out of the current predicamentseems to be a robust and transparentfiscal adjustment. However,that can only be done by reducingsocial expenditure, which is politicallycontentious. Kalinka Iaquinto reportson the heightening debate.