The National Congress is trying to vote this Friday on the 2026 Annual Budget Law (LOA) project, although the rapporteur, deputy Isnaldo Bulhões (MDB-AL), has not yet officially presented the final report on the proposal.
The vote was postponed at the request of Isnaldo, who requested additional time for technical adjustments to the text in light of recent changes approved by Congress with a direct impact on next year’s public accounts.
Isnaldo needed to recalibrate the Budget after the approval of the project that reduces tax benefits granted to companies by 10%, in addition to ongoing negotiations to include new sources of revenue, such as taxation of bets, fintechs and interest on equity (JCP).
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The CMO was called to meet this Friday, with staggered sessions starting at 9 am, to analyze the opinion as soon as it is presented. A joint session of Congress is scheduled for noon, when the text could be put to a vote, if the report is delivered in time.
The effort to vote on the LOA comes at a time of pressure on the government to close the 2026 accounts. The approval of the project that reduces tax incentives is considered a central piece to make the Budget viable, but the text underwent adjustments in Congress that reduced the revenue initially projected by the economic team. Among the main points are the staggering of the cut over three or four years and changes in the scope of the presumed profit rule for companies.
Faced with this scenario, the technical area of Congress needed to redo revenue calculations, evaluate the impacts of the nineteen rule and incorporate politically negotiated compensations, which led to the request for more time from the LOA rapporteur.
The 2026 Budget defines the federal government’s spending priorities for the next year, including resources for health, education, social assistance and infrastructure, in addition to revenue estimates and compliance with fiscal targets.
Behind the scenes, the Palácio do Planalto is pushing for budget predictability to avoid turbulence in the execution of expenses, while parliamentarians try to preserve space for amendments and programs considered priorities.
The attempted vote takes place about two weeks after Congress approved the Budget Guidelines Law (LDO) of 2026, which expanded the Legislature’s power over the execution of the Budget in an election year. The text obliges the government to pay at least 65% of the tax amendments by June 2026 and maintained the authorization for the Executive to pursue the fiscal target floor, instead of the center, expanding the margin for spending.
