president jair bolsonaro’s efforts to bust through brazil’s spending cap is already raising government borrowing costs and could result in as much as 74 billion reais 133 billion in extra payments on local bonds next year higher baseline rates as the central bank jacks up the selic in a bid to control inflation and increased risk premiums amid doubts about fiscal stability mean costs on existing debt could jump by 64 billion reais according to projections by adriana dupita an analyst for bloomberg economics who covers brazil from sao paulo new bonds issued to pay for extra outlays could add an additional 10 billion reais in debt expenses she estimates