The government’s budget proposal (Republicanos-SP) for the year 2026 reduces by 14%, in nominal terms, the budget for information from the State Finance Secretariat. Taking inflation into account, the drop is almost 20% compared to 2025.
According to the State Revenue Tax Auditors Union (Sinafresp), the cut is worrying in a context of the need for investment in technologies such as tax reform and the entry into force, which will require new tools for monitoring collections.
The result could lead to a drop in tax revenue and difficulties in identifying large evasion and money laundering schemes for organized crime.
The budget piece sent to the Legislative Assembly foresees R$387.28 million for this item, compared to R$450.69 million in 2025.
“The 14% reduction in IT resources directly compromises the Treasury’s ability to operate critical systems and face an increasingly complex and sensitive data environment,” says the union.
Furthermore, the entity foresees an even greater reduction, of around 30% in “innovative capacity”, given that fixed expenses in technology will be maintained.
For the secretariat in general, R$5.22 billion is expected, an increase of 3% over 2025, but which is below inflation for the period, close to 5%.
“The Secretary of Finance [] announced that São Paulo would be a protagonist in the tax reform, but by reducing the budget in the information technology area, it highlights a disconnect with the work of tax auditors and the real needs of the department, showing that its actions follow exactly the opposite direction of the speech it makes”, says the president of Sinafresp, Devanir Zuliani.
Other side
In a note, the Finance Secretariat says that the budget covers investment and funding needs and that the variation in the IT budget reflects the closure of Profisco 2, a program financed by the IDB (Inter-American Development Bank) which, between 2023 and 2024, increased resources for modernizing tax administration.
“For 2026, Profisco 3 is being processed, worth R$750 million, which will be incorporated into the Sefaz budget, as soon as the formal stage is completed. These resources should guarantee the continuity of investments in digitalization, intelligence, data infrastructure and team qualification, especially in the context of the implementation of the tax reform on consumption”, says the ministry.
Regarding the secretariat’s overall budget, the proposal says that it “follows the criteria established for the entire state administration: results-based planning, prioritization of strategic expenses and gradual recomposition of essential items, always aligned with the state’s fiscal balance.”
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