The National Congress will analyze the 2026 budget at the end of the year. This Thursday (4) the Budget Guidelines Law was approved, which defines the objectives and priorities of the federal public administration.
The next step is to vote on the PLOA (draft budget law), which determines the amounts of revenues and expenditures: what amount can be applied in each area and where the money will come from.
The Brazilian federal budget for 2026 projects initial expenditures of R$3.2 trillion, which can be divided into mandatory and discretionary expenditures. Mandatory spending represents about 92% of primary spending. Discretionary accounts represent about 8% of the total, concentrating investments and financing public policies.
Part of these values are linked to parliamentary amendments. The expected value of these adjustments was about R$50 billion in 2025, with the majority in mandatory adjustments (individual and seating) – about 20% of expenditures that the government can freely manage this year. For 2026, the value is still under discussion.
The LDO was approved on Thursday with the explicit commitment that Lula’s government (PT) will pay 65% of the parliamentary amendments before the start of the electoral period, on July 4, 2026. The deadline applies only to individual and state bench amendments, whose implementation is mandatory, and which are aimed at health.
The amendments represent approximately 60% of the expenditures of some ministries, which represents a significant burden on the free budget of these departments, especially in the social and infrastructure fields.
The three ministries that witnessed the largest number of amendments are Education, Health, and Integration and Regional Development. Regarding participation, the latter stands out, such as sports and tourism, for example.
Data from this year’s budget show that each representative, individually, has R$37.2 million, and each senator has R$68.5 million in adjustments.
To cover expenses, initial revenues are expected to reach R$3.19 trillion. The budget also forecasts fiscal expenditures of R$3.13 trillion, most of which refers to public debt payments. This cost is scheduled to cover R$ 3.14 trillion through bond issuance and refinancing operations.
What is the general budget?
The general budget is the tool the government uses to estimate the revenues that will be collected during the following year. Based on these estimates, it states the amount of resources that will be spent on providing goods and services to society
What is LDO?
The LDO is the Budget Guidelines Act, which sets the goals and priorities of the federal public administration. It also guides the process of preparing the LOA (Annual Budget Act).
What are the parliamentary amendments to the Palestinian Liberation Plan?
Parliamentary amendments are changes made by MPs and Senators to the PLOA (Pill Annual Budget Bill). An amendment can modify the revenue forecast, allocation, or expense amount
What are the types of parliamentary amendments?
They can be classified as individual amendments, state seat amendments, and committee amendments (from the Senate, the House of Representatives, and a mixed committee of the National Congress).
What is primary revenue?
It arises from tax revenues or from government assets, such as rents from federal public property
What are the initial expenses?
These are expenditures aimed at providing public goods and services to the population. In the 2026 budget proposal, total initial spending amounts to R$3.2 trillion
What are the types of primary expenses?
Initial expenses can be classified as mandatory and discretionary.
What are the main sources of primary income?
Most of the money comes from income tax (29%), social security collection for the public system (24%), and social contribution for coffins (13%).
The Ministry of Social Security has R$1.2 trillion (proposed for 2026).
What are the main expenses?
Social security benefits from the general social security system represent 37% of planned initial expenditures. Staff fees and social costs represent 14%. Social assistance (Bolsa Família, BPC, unemployment insurance and salary bonus) represents 10%.