Overview

• The Mixed Budget Committee again delayed analysis of the 2026 budget guidelines, with no new date set after a government request.
• An expired provisional measure meant to offset IOF losses reopened a gap estimated at more than R$20 billion this year and potentially up to R$40 billion in 2026, prompting a scramble for alternatives.
• The LDO report would require payment of individual and bloc amendments, including emendas PIX and health and social assistance transfers, by June 2026, concentrating more than half of annual outlays early in the year.
• The Planalto has signaled President Luiz Inácio Lula da Silva would veto the imposed calendar, while congressional leaders argue it provides predictability and limits political leverage over payment timing.
• Exploratory talks consider proportional month‑by‑month execution as a compromise, and CMO president Efraim Filho pressed the government to prioritize spending cuts over new tax increases.