Marcela Ayres, Bernardo Caram

BRASILIA. (Reuters) – Brazil’s government will veto 3.1 million reais ($568m) of discretionary expenditures in Congress appropriations in 2022 budget. These funds are to be used on public payrolls, according to two Ministry of Economy sources.

While the government was keen to block up to 9 Billion Reis from being vetoed, they decided it would not be politically feasible in an election year. The budget bill has been approved by Congress already.

The bill can be signed by President Jair Bolsonaro until today

Three sources close to the situation say that the annual electoral fund which supports this year’s campaigns will not be reduced from 4.9 billion reais.

Sources said that Congress would allow salary adjustment of public servants up to 1.7 million reais.

This week, the reserve for wage rises was front and center when civil servants went on a partial strike to demand higher salaries.

Bolsonaro claimed last year that only those working in the security sector would receive pay increases. This sparked protests from others within public service.

Bolsonaro will be running for re-election on October 31st. He has not yet decided which employees will receive raises.

($1 = 5.4537 reais)