Government and Congress Align 0.5% GDP Fiscal Adjustment for 2027
Plan targets 80 billion reais in savings through tax incentive cuts and changes to constitutional spending floors.
The federal government has reached an agreement with the National Congress to implement a fiscal adjustment equivalent to 0.5% of the Gross Domestic Product in 2027. The coordination took place during a meeting between the Ministry of Finance and the Senate leadership. The goal is to pass the supplementary bill before the end of this year.
Measures under review include excluding extraordinary revenues from the calculation base for health and education spending floors. The plan also covers the Federal District Constitutional Fund and proposes a linear cut to corporate tax breaks. The objective is to achieve annual savings between 70 and 80 billion reais.
In parallel, the Chamber of Deputies approved an expansion of 13.5 billion reais in credit for the Sovereign Brazil Plan. This measure seeks to mitigate the impact of tariffs imposed by the United States on Brazilian foreign trade. The bill now moves to the Senate and allows for the use of BNDES funds.
The credit plan supports exporters in the industrial, agricultural, and mining sectors. The rapporteur removed requirements for prior repayment of funds to facilitate immediate access to resources. The proposal still requires budgetary authorization for the release of the funds.
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