Brazil's Congress passes bill to raise spending cap for welfare program

A general view shows the plenary of the Chamber of Deputies during a session to vote on a constitutional amendment that increases the government spending ceiling in Brasilia, Brazil December 20, 2022. REUTERS/Adriano Machado

Brazil's Congress late on Wednesday gave its final approval to a constitutional amendment increasing the government spending cap to maintain welfare payouts to poor families next year, a centerpiece campaign pledge by the country's incoming president.

The green light represents a major victory for leftist President-elect Luiz Inacio Lula da Silva, overcoming a first challenge ahead of his Jan. 1 inauguration despite market jitters over his plans to boost spending.