“Wartime Budget” to tackle Covid-19 public calamity is enacted by the National Congress

Constitutional Amendment No. 106/2020, which institutes an extraordinary fiscal, financial, and contracting regime to tackle the public calamity due to the Covid-19 pandemic, was enacted on May 7th, 2020 by the National Congress. The measure simplifies the federal government’s procedures on purchases, construction work, hiring temporary staff and services.

The “Wartime Budget”, valid until December 31st, makes possible to separate the extraordinary and emergency expenses that are necessary to combat Covid-19 from the other expenses foreseen in the General Federal Budget. This is a way to guarantee that these extra transitory expenses do not become permanent expenses.