Lula Vetoes Budget Spending

Brazil’s President, Luiz Inacio Lula da Silva has vetoed part of the 2006 budget guidelines law that Congress passed in August to try and increase the government’s spending flexibility next year. Some of the 23 budget elements vetoed by the president include the pay rise to be awarded to civil servants above the rate of inflation. Congress can override the president’s veto with a two-thirds’ majority and must vote on the law before year-end.