Nevertheless, the document is a step in the right direction, reckons Eduardo Giannetti, a professor of economics at the university of Sao Paulo.

ECONOMIST: Brazil��s opposition

Eduardo Giannetti, economic adviser to Marina Silva, the presidential candidate of the Green party, reckons that what might have been justified as an emergency measure is instead turning into an open-ended commitment for billions.

ECONOMIST: Brazil's development bank

Over 90% of local councils serve populations of fewer than 50, 000, each one typically getting almost nine-tenths of its revenues from higher tiers of governments, according to Eduardo Giannetti, an economist at the University of Sao Paulo.

ECONOMIST: Brazil