Lula Signs 2026 Budget, Preserves R$61 Billion in Amendments and Vetoes Party Fund Increase

Overview

• President Lula issued 26 vetoes, blocking an automatic adjustment to the Fundo Partidário and halting a provision to revive unpaid amendments from 2019–2023 tied to the defunct ‘orçamento secreto’.
• The enacted calendar requires payment of 65% of impositive amendments by the end of the first semester of 2026, a pace that historically exceeded recent election‑year execution levels.
• Of roughly R$61 billion in amendments, R$49.9 billion remain under direct congressional control, with about R$37.8 billion impositive; the budget projects a primary surplus near R$34.3–34.5 billion, a total of about R$6.5 trillion, and an investment floor of R$83 billion.
• Oversight intensifies as STF minister Flávio Dino forwards CGU findings on ‘emendas Pix’ to the Federal Police, with cases advancing and an STF proceeding involving deputies scheduled for March.
• Congress can still vote on the vetoes; the R$4.9 billion election fund was preserved, and the party fund stands near R$1.4 billion after the recalculation rule was rejected.