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3h ago

Lula to Partially Veto 2026 Budget, Cutting R$11 Billion From Lawmakers’ Amendments

The Planalto says fiscal rules bar the extra R$11 billion, setting up a test in Congress over the veto.

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Overview

  • With the cut, resources earmarked for parliamentary amendments drop to roughly R$50 billion from the R$61 billion approved by Congress.
  • The budget is set for partial sanction on Wednesday, with the government using a mix of veto, blocking and remaneuvering of funds.
  • The Casa Civil cites the fiscal framework and Supreme Court jurisprudence to argue the increase exceeded legally allowed growth.
  • Budget rapporteur Isnaldo Bulhões rejects the claim of excess and notes Congress can decide whether to uphold or overturn the veto.
  • The dispute unfolds as the LDO compels payment of 65% of amendments in the first semester and as the Federal Police advance Operation Overclean probing emenda-linked fraud.