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Brazil Details R$12.1 Billion Budget Block as Cities and Health Take Biggest Hits

A separate R$23.8 billion cap on commitments runs to November to pace spending under the fiscal framework.

Overview

  • A decree published in an extra edition of the Official Gazette on September 30 set total blocks at R$12.149 billion, including R$2.794 billion in parliamentary amendments.
  • The Ministry of Cities faces about R$2.424 billion in blocked discretionary funds and Health R$1.817 billion, while Education and the Central Bank were spared in this round.
  • Planning and Finance said the measures align outlays with revenue projections under the fiscal rules and follow the fourth bimonthly revenue and spending report.
  • An additional restriction on commitments phases R$23.8 billion until November, a mechanism that allows staged releases if fiscal conditions permit.
  • Agencies have until October 7 to specify which programs will be frozen or released, with the primary deficit estimate at R$30.2 billion, within the legal tolerance band as the TCU presses for pursuit of the target midpoint.