Increase is attributed to the growth of mandatory expenses and the frustration of revenue due to the absence of compensation for payroll exemption
The federal government last Thursday (22) announced an increase in highlighting a significant drop in revenues and an increase in mandatory expenses. According to the Minister of Finance, the reduction of 41 billion reais in net revenues in relation to the 2025 budget was attributed to insufficient compensation of payroll exemption. In addition, compulsory expenses, including Social Security, increased by almost 37 billion reais, with an increase of 16 billion reais in pensions. The government also allocated 7 billion reais in extraordinary credits to Rio Grande do Sul and 2.8 billion reais for the continued benefit (BPC).
To face the increase in expenses, the government has announced contingency measures, including a freezing of 31.3 billion reais to maintain fiscal responsibility. This involves a contingency of 20 billion reais and a blockade of 10 billion reais in discretionary spending. The Ministry of Finance’s bimonthly report also highlighted the precatory, which totaled 97 billion reais to the primary deficit. Without the precatory, the deficit would be 51 billion reais. The government is committed to complying with the 2025 budget and maintaining fiscal responsibility, but faces significant challenges in this process.
The bimonthly report provides for a drop of R $ 41.7 billion in net revenues compared to the 2025 budget amount. In return, estimates an increase of R $ 36.4 billion in mandatory expenses. When considering the blockade of R $ 10.6 billion, the estimated increase in spending drops to R $ 25.8 billion. Regarding spending, the main factors that press expenses are Social Security, up R $ 16.7 billion compared to the budget approved. Also contributing residues of R $ 7.2 billion of extraordinary credits to help to Rio Grande do Sul and R $ 2.8 billion from the continued benefit (BPC). On the side of the revenues, the main factors were the insufficient compensation of the payroll exemption.
*With information from Aline Beckety
*Report produced with the aid of AI
