BRASILIA, Aug 4 (Reuters) - Brazil's government is drawing
up a constitutional amendment to create a fund from
privatizations and state asset sales to pay down debt, meet
court-ordered payment obligations and help the country's poorest
people, a government source said on Wednesday.
Crucially, from a fiscal perspective, the fund will not be
subject to the 'spending cap', the government's most important
fiscal rule which limits growth in public spending to the
previous year's rate of inflation.
According to the source, the Economy Ministry has already
drawn up the amendment, and could submit it to Congress as early
as this Wednesday.
(Reporting by Marcela Ayres
Writing by Jamie McGeever; Editing by Kirsten Donovan)