Politics · Brazil · 58 mins ago
Brazil Senate approves base text of fiscal adjustment bill
Brazil’s Senate approved the main text of a fiscal adjustment bill by 45 votes to 31 on Thursday.
The bill would add triggers to the country’s fiscal framework, which sets limits on government spending.
The proposed rules give the government more ways to control public accounts, including blocking spending to aim for the centre of its primary-balance target.
The bill could also lower the annual limit on real spending growth from 2.5% to 2% starting in 2027.
It would cut some tax benefits by about 20%, while excluding several categories, including incentives for technology and semiconductors.
The government estimates the measures could improve the 2027 primary balance by 45.1 billion to 56.1 billion reais.
Senators still need to consider four proposed changes, expected next week, after which the bill goes to the Chamber of Deputies.
Brazil’s Senate approved the base text of a fiscal adjustment bill by 45 votes to 31.
The bill creates triggers in the fiscal framework to give the government new tools to control public accounts.
Senators still need to consider four proposed changes, a step expected to take place next week.
After that review, the bill will go to the Chamber of Deputies.
The government estimates the measures could improve the 2027 primary balance by 45.1 billion to 56.1 billion reais.
- Who
- Brazil’s Federal Senate approved the bill. It was proposed by government Senate leader Jaques Wagner and reported by Eduardo Braga.
- What
- Senators approved the base text of a fiscal adjustment bill that creates triggers in the fiscal framework.
- When
- Thursday, November 12, 2026.
- Where
- Brazil’s Federal Senate.
- Why
- The bill aims to give the government more tools to control public accounts and accelerate fiscal consolidation.
This story does not have two clearly opposing sides.
The Senate approved the bill’s base text by 45 votes to 31.
Senators are expected to consider four proposed changes to the bill.
The bill is set to go to the Chamber of Deputies.
- Senate vote
- 45 in favor; 31 against
- Proposed changes pending
- Four
- Expected review
- Next week
- Projected 2027 primary-balance improvement
- R$45.1 billion to R$56.1 billion
- Expense-growth limit
- Could fall from 2.5% to 2.0% a year from 2027