The analysis of the report on the 2026 Budget Guidelines Law (LDO) was postponed in the Joint Budget Committee (CMO), following a request made by the government for more time to evaluate possible adjustments to the text due to revenue frustration with the fall of the provisional alternative measure to the IOF.
The announcement was made by the president of the Mixed Budget Committee (CMO), senator Efraim Filho (União-PB), who, when justifying the postponement, criticized the fiscal conduct of the Luiz Inácio Lula da Silva government. The forecast is now that the vote will take place in the collegiate on Wednesday.
“Minister Fernando Haddad deals with a fundraising agenda every day, but seems to have relegated spending cuts to the background. Fiscal balance is also achieved on the expenditure side, and the government needs to understand this”, stated Efraim, who also chairs the Senate’s Economic Affairs Committee (CAE).
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According to the senator, the loss of revenue cannot be used as a justification for new rate increases. He said that Congress wanted to give “a clear message that it can no longer tolerate the tax increase agenda” and demanded from the Executive more efficiency and rationality in public spending.
“The government seems to have forgotten that fiscal balance is also achieved by qualifying spending, eliminating waste and reducing costs”, he criticized.
Efraim said that the postponement of the vote on the report was a request by the president of Congress Davi Alcolumbre (União-AP), on behalf of the Minister of Finance so that there would be time for dialogue with the economic team before the deliberation. According to the president of the CMO, the plan is to continue the consideration of the matter in the Congress plenary on Thursday.
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“Senator Davi sent me a cordial request for us to postpone the vote on the LDO report. He maintains, however, the prospect of voting on the text in Thursday’s session, which will have only two agendas: the veto of environmental licensing and the LDO”, stated Efraim.
The parliamentarian also warned that the deadlines are tight and that Congress needs to approve the Budget this year to avoid harm to the 2026 budget execution.
“Not voting on the Budget would be bad for the government, bad for Congress and bad for Brazil,” he said.
The postponement occurs amid one of the points of greatest tension between the government and Congress: Planalto’s attempt to block the advance payment schedule for parliamentary amendments, included in the LDO report by deputy Gervásio Maia (PSB-PB). The provision requires payment for individual and bench amendments up to three months before the elections, expanding the political power of allied parliamentarians and mayors.
The measure determines that funds allocated to health, social assistance and special transfers — the so-called “Pix amendments” — are paid by June 2026, which would guarantee predictability for municipalities, but reduces the government’s fiscal room for maneuver and weakens the Planalto’s political articulation power.
Members of Congress say that the format facilitates local planning and reduces the risk of work being stopped. In Planalto, the assessment is that the calendar has an electoral nature and compromises budget execution. The government is trying to convince party leaders to remove or soften the section during the plenary vote.
