The withdrawal from the agenda of Provisional Measure 1303, which presented alternatives to the increase in the IOF by the Chamber of Deputies, highlights a delicate moment in relations between the Executive and the Legislative. The decision, taken amid intense negotiations, signals difficulties in the political articulation of the Lula government. Analysis is by Isabel Mega at CNN New Day.
The episode exposes deeper fractures in the relationship between the powers, especially when observing the MP’s insistence on voting, even in the face of clear signs of possible defeat. The confrontational strategy, characterized by the narrative of the “congress enemy of the people” and the emphasis on taxing the richest, ended up contributing to increasing tensions.
Impacts on budget discussions
The scenario becomes even more complex in light of the approaching ones. The Budget Guidelines Law (LDO) and the Annual Budget Law (LOA) will need to be debated in an environment already marked by divergences, with the possibility of new resource blocks being signaled by the government.
“The exemption agenda is always sensitive to sectors that want to remain exempt, thereby paying less taxes”, explains analyst Isabel Mega. The central argument of these segments is the possible impact on employability if benefits are removed.
Political disputes and looking to 2026
The clash also reflects political movements with a view to the 2026 elections. “We do have a political group in the Chamber of Deputies, extremely physiological, that does not want to write any blank checks so that the government has a budgetary breather and with that it can turn on the machine and come out with packages of kindness that could bring more popularity to President Lula”, assesses Mega. In this context, Tarcísio de Freitas is highlighted as a possible opposition name, although he remains governor of São Paulo.
What began as a technical issue turned into an essentially political clash, highlighting the government’s difficulties in building effective agreements with the National Congress.
