The Politics Of Wealth: Brazilian SWF To Shore Up Fiscal Accounts

Fiscal accounting is more of an art than a science at the best of times. This is all the more valid in election years and the Brazilian Presidential election in October 2010 is no exception. Planning and Budget Minister Paulo Bernardo has said that Brazil might tap its US$20bn sovereign wealth fund next year to help finance spending without widening the budget deficit. In other terms, the government is using a financial instrument usually associated with countries that have elevated budget surpluses to tackle high interest rates and government spending.

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