Politics · Brazil · 1 hr ago
Brazil Senate advances fiscal package with savings estimated at up to R$56 billion
Brazil’s Senate approved the main text of a government fiscal package on Thursday by 45 votes to 31.
The package aims to improve public finances and limit growth in the country’s public debt.
Its measures include tighter limits on budget spending, cuts to tax exemptions and a change to how the health spending floor is calculated.
The package’s savings could reach R$56 billion next year, according to the bill’s Senate rapporteur, though estimates from financial firms are lower.
Business groups have strongly criticized a measure that would limit companies’ use of tax credits to pay taxes.
Senators still need to consider proposed changes, with the vote due to be completed next week.
If approved, the bill will go to Brazil’s lower house, the Chamber of Deputies.
Brazil’s Senate approved the base text of a fiscal adjustment bill by 45 votes to 31 on Thursday.
The measures could save up to R$56 billion next year, according to the bill’s rapporteur, Senator Eduardo Braga.
The bill includes triggers for increased budget spending freezes, cuts to tax exemptions and a change to how the health spending floor is calculated.
Senators still need to consider proposed changes, with the Senate president saying the vote would be completed next week.
The bill would then go to the Chamber of Deputies.
- Who
- Brazil’s Federal Senate approved the bill. Senator Eduardo Braga reported the text.
- What
- The Senate approved the base text of a fiscal adjustment bill. Its measures could save up to R$56 billion next year.
- When
- Thursday, November 12, 2026.
- Where
- Brazil’s Federal Senate in Brasília.
- Why
- The government proposed the measures to adjust public accounts and avoid a significant increase in public debt.
Government supporters
Business-sector entities
Tax-credit limits
Government supporters
The bill includes a measure allowing limits on the use of tax credits.
Business-sector entities
Business-sector entities strongly criticized the measure.
The proposal was presented.
The Senate approved the bill’s base text by 45 votes to 31.
The Senate is due to complete its consideration of proposed changes before sending the bill to the Chamber of Deputies.
- Senate vote
- 45 in favor, 31 against
- Potential savings
- Up to R$56 billion next year, according to rapporteur Eduardo Braga
- Government estimate
- At least R$50 billion in 2027, with a possible impact of R$60 billion
- Proposed changes accepted
- Braga accepted 20 amendments from senators
- Next legislative step
- The bill is due to go to the Chamber of Deputies after Senate consideration
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What people are saying
It was meant to teach us how to manage because of the BRB issue, since we made a mistake with BRB