Government Proposes Fiscal Adjustment of Up to R$ 60 Billion by 2027

The federal government has introduced a supplementary bill featuring fiscal adjustment measures projected for 2027. Official estimates point to a financial impact between R$ 50 billion and R$ 60 billion. The text seeks to ensure compliance with the primary surplus target set at 0.5% of the Gross Domestic Product.

The plan reduces the real growth limit for expenses from 2.5% to 2% in scenarios where revenue falls short. This measure allows the Executive Branch to freeze mandatory spending that lacks constitutional protection. The government also plans to cut tax benefits to optimize budgetary room.

The Ministry of Planning and Budget confirmed its intention to reallocate resources to accommodate campaign promises. The amount earmarked for these commitments is around R$ 20 billion. Minister Bruno Moretti stated that these expenses will be integrated into the budget regardless of the full approval of the bill.

New discussions regarding a Constitutional Amendment Proposal should take place after President Luiz Inácio Lula da Silva returns from international trips. The goal is to expand the scope of the fiscal adjustment by limiting expenses currently outside the framework. The original bill awaits a vote in the Joint Budget Committee.