The LDO rapporteur must accept government requests regarding Regulation S, the adjustment schedule and the financial target policy

The rapporteur of the 2026 Budget Guidelines Law (LDO), Rep. Gervasio Maia (PSB-PB), must accept some of the government’s requests in his report. Among them, a request to exclude System S from the social assistance budget, an explicit reference to the use of the minimum target as a contingency parameter and a request to apply a payment schedule of adjustments to 60% of resources until the election closing period.

As for the allies, Gervacio Maia rated the meetings with the government throughout Tuesday (2) as “very positive”, said that he worked to calm the political environment and the climate of conflict between the government and Congress and assessed the balance of the meetings as “very good”.

According to valuethe climate is suitable for voting on the text on Wednesday (3) in the Mixed Budget Committee (CMO) and in the plenary session of Congress on Thursday (4).

Previously, there was a government request not to hold a vote on the LDO before Congress approved provisions such as reviewing tax incentives or increasing taxes on betting, but the assessment now is that it is necessary to move forward with the CMO schedule – and outstanding issues can be dealt with via the PLN.

According to sources involved in the negotiations, Tuesday’s talks were very productive, and although there are still requests for an increase in the payment ratio for the amendments, for example, Congress already sees a victory in the fact that the government agreed, for the first time, to agree on a payment schedule – after a year in which the implementation of the budget was severely criticized by parliamentarians.

Earlier, the rapporteur already indicated to journalists that he would include in the opinion a solution to the impasse regarding the limit of the financial target under discussion in the Federal Court of Audit (TCU).