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World

Government unlocks R$5.7 billion from the 2026 Budget

  • The amount appears in the Bimonthly Income and Expense Assessment Report, a document sent to Congress every two months that guides the execution of the Budget.
  • With the unlocking, the total resources blocked in 2026 falls from R$23.7 billion to R$17.9 billion.

The 2026 Budget will release R$5.7 billion in non-mandatory spending, the Ministries of Finance and Planning reported recently. The amount appears in the Bimonthly Income and Expense Assessment Report, a document sent to Congress every two months that guides the execution of the Budget. With the unlocking, the total resources blocked in 2026 falls from R$23.7 billion to R$17.9 billion.

The blockades are necessary to comply with the fiscal framework's spending limit, which foresees spending growth of up to 2.5% above inflation for this year.

The main mandatory expenses, whose estimates decreased in relation to the previous two months, are the following: • Personnel and social charges: -R$ 4.2 billion; • Social security benefits: -R$3.2 billion; • Continuous Payment Benefit (BPC): -R$ 3.2 billion; • Other expenses: -R$ 100 million. On the other hand, the report increased the forecast for the following mandatory expenses: • Mandatory expenses with flow control (health expenses): +R$ 3.4 billion • Unemployment allowance and insurance (defense for fishermen): +R$ 1.6 billion. Primary surplus For the third time in a row, the report did not provide a contingency forecast, resources temporarily blocked to meet the primary result target, the result of the government's accounts before paying the public debt.

According to the two ministries, the primary surplus projection this year increased from R$4.1 billion to R$10.8 billion. The result was possible because of the increase in the estimate for net revenues by R$12.3 billion in 2026. The forecast for primary expenses this year increased by R$4 billion. The estimated expenditure that can be deducted from the primary result target fell by R$1.6 billion.

This account, however, disregards the payment of court orders (debts of the Union with a final court ruling) and some health, education and defense expenses. With the inclusion of these expenses, the primary deficit forecast in 2026 fell from R$60.3 billion to R$52 billion.

Source: Agência Brasil

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