Income tax exemption will be new and will help move the economy in the election year; Digital Planalto are also in the Extended Family Bolsa
Congress has been giving a series of gifts to the President (PT). These are measures that increase social expenses or increase the collection – and that help the petista in their reelection project in 2026. Initiatives include creation and expansion of programs, renovations in tax collection and improvements in public services. In most cases, these projects have the support of center parties, whose rhetoric is anti-planalt, but in practice they end up helping the government.
Some of these proposals still depend on voting to start to apply, but the government has been acting hard and all tend to be approved. This is the case of income tax exemption for those who earn up to $ 5,000 per month. The mayor, (Republicans-PB), wants to analyze the text in September.
The change in the collection of IR will benefit. It will force hard the poorest and the middle class, which in all (value that will be compensated with a higher taxation of the so-called “super rich”).
All this money will help to pump the economy and move trade and industry in general in the election year. Resource injection increases the sense of well-being mainly from the poorest portion of society. It will be decisive for the Plateau to improve Lula’s approval rates.
The following picture has a summary of what Congress has already granted Lula in just over 2 and a half years of office of the petista and should help Planalto in 2026:
In addition to the exemption of income tax, the president will have to expose in his electoral showcase the reformulation of the 2023 in the minimum amount of $ 600 with the creation of cash for small children and pregnant women, for example, which, depending on the case. The average benefit distributed was R $ 682.22 in September 2025.
The aid had already rise provisionally in the government (PL), but the new value was officially instituted after the election, at Lula’s initiative and Congress help.
Still in the social area, it was created in 2024 o. The program gives money to high school students in the form of a savings to reduce school dropout. Most values are released only when the beneficiary forms. There are additional years by year and for the realization of (National High School Exam). Distributed values can reach R $ 9,200 per student in total.
The foot was paid in February 2025 to 4 million people. Mainly impacts the younger ones, potential new voters in 2026 (in Brazil, the vote is optional from 16 years and mandatory from 18).
Other projects approved by Congress releases budget space for various types of spending. They will also help Lula’s project for reelection. This is the case of PEC of precatory, which limited the payment of these debts and gave $ 12 billion more for the president to spend next year. Congress the text on September 9. It was one of the priorities of the president of the Senate, (Brazil-AP Union), which has been sympathetic to the Plateau.
The House on September 10 the project that allows it to exclude from the tax framework the resources of the Social Pre-Salt Fund for Health and Education. It releases about $ 1.5 billion a year for 5 years for the government to use with these areas. Plenary approval is missing.
When the values of the programs and projects of the infographic above this post are added, Lula will have R $ 251.9 billion to distribute, spend or boost the economy in an election year with its digital. This money will compensate for a possible slowdown caused by, today at 15% per year.
In addition to the above measures, Congress should also help the government release a series of credits in the 2nd semester of 2025, whose economic impacts will certainly be felt early next year. This is the case of provisional measures and, both under discussion, which should inject R $ 15.3 billion into the economy.
A part of the opposition believes that this complacency of the centrão with the government’s guidelines makes Lula increasingly strong to win next year’s election. And obviously, everything is harder for the right -wing candidate who trying to rival the petista in the race for the Plateau.
The governor of São Paulo, (Republicans), is one of those who share this view. It has told allies that the dispute for the Planalto is a venture of great magnitude and evaluates that the petista opponent is today the favorite. He fears that, to renounce to try to be president, a breach to open himself in the state where he commands a center or center-left name to reach the Bandeirantes Palace from 2027.
COLLECTION MEASURES
In addition to the programs and services created and expanded, Congress has also helped the government approve a series of measures that positively impact the fiscal area.
Here are some examples of projects approved with the support of Lula’s economic team:
- New tax framework – the limitations of government spending;
- Tax reform – The tax system of Brazil;
- Offshores and exclusive funds – offshores and exclusive funds aiming to charge more taxes from the so-called “super rich”;
- Carf Quality Vote – The mechanism for the government to always have the tiebreaker in a tax payment litigation;
- Sports bets – Gross revenue from betting companies obtained with games;
- Gradual End of the Perse – A ceiling of R $ 15 billion impact by 2026 for the emergency resumption program of the event sector;
- Blouses – with federal exemption to imports of up to US $ 50;
- MP – Rules of subsidies for large companies, making it harder to pay taxes.
In May, the government also a decree increasing the IOF (Financial Operations Tax) to strengthen the collection. Congress did not like. Opposition deputies and part of the centron propagated in the media that the legislature did not admit discharge from taxes and that there would be a reaction – that really came.
After a few weeks of discussion, deputies and senators a PDL (Legislative Decree Project) revoking Lula’s measure. The plateau then decided to react. He took the case to the Supreme Court (STF) claiming that Congress had violated the principle of separation between powers.
Minister Alexandre de Moraes was responsible for analyzing the case. The magistrate and allowed the return of IOF. This measure helps the executive. In June, for example, this tax R $ 8.02 billion to the Union, 38.8% higher than in the same period of the previous year.
Congress even rehearsed retaliation later, but nothing walked and everything was as the Planalto wanted.
Since possession, Lula avoids making spending cuts or promoting structuring measures that may improve the situation of public accounts. Without the help of Congress to approve measures such as those mentioned above, the government would have faced a much greater difficulty in managing the cashier.
