Senate Approves Base Text of Lula's Fiscal Adjustment
Graduated in journalism from Paulista State University Júlio de Mesquita Filho. Reporter for Revista Oeste since September 2024.
TL;DR
- Senate approved the base text of a fiscal adjustment bill with 45 votes to 31.
- The bill limits annual federal spending growth to 2% above inflation starting in 2027.
- It allows the government to block more budget funds to aim for a positive fiscal balance of R$73.2 billion in 2027.
- Tax benefits for certain economic sectors will be reduced, though incentives for the tech industry and vehicle purchases for people with disabilities/autism are preserved.
- The proposal restricts companies from using tax credits to offset different types of taxes, potentially increasing federal revenue by up to R$18.3 billion in 2027.
- It establishes a 120-day deadline for Congress to analyze rules against 'super salaries'.
- The government can withdraw up to R$10.5 billion in diesel subsidies from the 2026 fiscal target calculation.
- The opposition criticized the rapid progression of the bill, while the government argued for its necessity before the 2027 Budget vote.