BRASILIA (Reuters) -Brazil's President-elect Luiz Inacio Lula da Silva's transition team could include a new fiscal framework commitment in a proposed constitutional amendment, the leader of Lula's Workers Party said in the lower house on Friday.
The commitment for a new fiscal anchor would be included in a proposed amendment that exempts nearly 200 billion reais ($37.16 billion) in social spending from the country's budget cap and has been spooking investors, who argue it could push public debt to record levels and force a monetary policy shift.
"We can bring this commitment in the proposal, compromise that we can bring a new fiscal framework through a complementary bill," said Congressman Reginaldo Lopes in an interview with local broadcaster GloboNews.
Lopes added that, beyond the new fiscal framework, the government should also revise the fiscal responsibility law enacted in 2000 to include 10-year goals related to poverty, inequality and education.
Brazilian assets have negatively reacted to the uncertainty about the country's public accounts.
Late on Thursday, Vice President-elect Geraldo Alckmin vowed the incoming government will be fiscally responsible, in an effort to sooth investors worries.
Since the election campaign, Lula has promised to end the constitutional spending cap, which limits public expenditures growth to the previous year's inflation, without detailing the new fiscal anchor that will replace it.
($1 = 5.3827 reais)
(Reporting by Ricardo Brito; Writing by Peter Frontini; Editing by Josie Kao)
