The economic team reduced the expenditure block to R$4.4 billion, but had to set aside R$3.3 billion to meet the fiscal target
The government of the president (PT) announced this Friday (Nov 21, 2025) a containment of R$ 7.7 billion in the 2025 Budget. There was a reduction in the expenditure blockage from to R$ 4.4 billion. The economic team, however, had to set aside R$3.3 billion to meet the fiscal target.
Understand the difference:
- lock – the government reviews Budget expenses, which were higher than allowed by the fiscal framework. It is more difficult to reverse;
- contingency – is done when there is frustration in expected revenues in public accounts.
The data is in the Income and Expense Assessment Report for the 5th two months. The document is prepared by and by the National Treasury. Here is it (PDF – 2 MB).
In September, the economic team had announced a sum of R$1.4 billion. The Lula government claims that the execution of mandatory expenses advanced from the 4th to the 5th two months, which led to the cancellation of part of the blockade made in the expectation that spending would increase.
The details, by body, of the blockade will be included in the Annex to the Budgetary and Financial Programming Decree, to be published on November 30th. After the publication of the decree, the bodies will have 5 working days to indicate the programs to be blocked.
META FISCAL
This Friday (November 21, 2025), the government revised the projected deficit in public accounts to R$34.3 billion in 2025. The previous expectation was a negative balance of R$30.2 billion.
The new estimate led to the need to freeze R$3.3 billion in revenue. In the previous two months, there were no contingencies.
This year’s goal is zero the deficit. However, the fiscal framework determines a tolerance range of up to 0.25% of GDP (Gross Domestic Product) for the primary balance. In nominal values, the government will be able to spend up to R$31 billion more than it collects.
The Executive considers the payment of court orders and compensation for INSS (National Social Security Institute) retirees and pensioners who received undue associative discounts to be outside the primary result. This is to meet the fiscal target.
When taking these values into account, the deficit would be R$75.7 billion this year.
