Overview

• Speaking at BTG Pactual’s Macro Day, Fernando Haddad said fiscal results reflect legislative appropriations and judicial determinations, not only executive policy.
• He quantified changes to BPC and Fundeb adopted in 2021 as adding about 0.5 percentage point of GDP to recurring spending, citing more than R$70 billion incorporated that year.
• He described the “Tese do Século” ruling as a roughly R$1 trillion revenue loss over time with implications for the public-debt trajectory.
• He said the 2026 budget includes nearly R$80 billion linked to BPC/Fundeb changes plus about R$170 billion in expenditures that did not exist in 2011.
• He noted court-ordered precatórios have almost doubled and pointed to R$50 billion in parliamentary amendments, urging votes on curbing supersalaries and military pension changes while stressing that growth is crucial and interest rates cannot be attributed to fiscal policy alone.