Brazil Senate to Vote on Fiscal Adjustment Package Worth Nearly $60 Billion

The federal government presented a fiscal adjustment package on Wednesday, November 11, aiming to generate savings between 50 billion and 60 billion reais in 2027. Planning and Budget Minister Bruno Moretti introduced the proposal during a public hearing at the Joint Budget Committee in the National Congress.

The measures will be grouped into a complementary bill, PLP 299/2026, negotiated with Senate leadership. The goal is to strengthen expense control, increase revenue, and help meet next year's fiscal target.

“It is a project that solves a problem that the unanimity of Brazil wants regarding the Brazilian state.”

One key measure would limit real growth in federal spending to 2 percent in 2027 if projections show a risk of missing the lower limit of the fiscal target. The current fiscal framework allows real growth of up to 2.5 percent, and the reduction could represent an additional containment of 12.8 billion reais in the budget.

The proposal also includes changes to fiscal incentives and tax compensation mechanisms used by companies. It provides for an additional linear reduction of 10 percent in exemptions and tax incentives granted to economic sectors, and limits the use of credits companies hold with the Federal Revenue to pay taxes.

Senate President Davi Alcolumbre suspended Wednesday's session and scheduled the vote for Thursday at 4 p.m. He said the project could be postponed to next week if leaders need more time.

Opposition senators expressed dissatisfaction with the urgency of the vote. Senator Damares Alves said the project is very technical and requires time to understand, while Senator Magno Malta complained he did not know the text and did not want to "vote blindly."

Alcolumbre stated the project addresses the balance of public accounts and has an impact of nearly 60 billion reais. He added that the quorum will be maintained for Thursday's session.