Context: In the light of uncertain times amidst pandemic, the rationale for public spending is strengthened by the recent spending spree by the Brazilian Government through income support to households and firms.
The rationale for Government Expenditure:
The rationale for Capping of Government Expenditure: In 2016, Brazil passed a constitutional amendment capping the government expenditure to 20% of the Gross Domestic Product (GDP)
Lessons for India: Bend with the wind