Lula's Government Sends Fiscal Adjustment Project to the Senate
Lula's government fiscal adjustment project is expected to be voted on by the Senate in the coming days; the estimated savings are up to R$54 billion in 2027.
TL;DR
- The project aims to adjust public accounts by cutting tax benefits, regulating high salaries, and contingencing expenses.
- The fiscal impact is estimated between R$43 billion and R$54 billion for 2027.
- Key measures include contingencing funds to meet fiscal targets, limiting primary spending growth to 2.0% when activated, and reducing tax compensation.
- The bill also proposes revising tax benefits, limiting special fiscal regimes, and allowing the desvinculation of up to 40% of financial surpluses.
- Other proposed measures address the "supersalários" (high salaries), pension compensation, export financing, Lei Kandir transfers, oil revenue, diesel subsidies, and research grants.