Government details R$7.7 billion spending freeze; The Ministry of Cities is the most affected

On Friday, the government published the Budget Programming Decree that reduces the amount of resources frozen in the 2025 budget from R$12.1 billion to R$7.7 billion. The ministries most affected are Cities, with R$1.2 billion, and Agriculture and Livestock, which will be prevented from using R$475 million.

Resources remain blocked in all departments, except the Ministry of Education, at the end of the year.

After the Cities Region, the portfolios of Agriculture, Defense (R$456.8 million) and Health (R$405 million) are the ministries with the most frozen resources.

In the previous report, in September, the value of the blockade was R$12.1 billion and there were no emergency resources. Last Friday, the government reduced this amount to 4.4 billion Brazilian riyals in spending blocks, and 3.3 billion Brazilian riyals in emergency allocations.

Of this total, R$5 billion are resources from the executive, while another R$2.7 billion are expenses for parliamentary amendments of the National Congress.

The blocks and contingencies aim to balance revenues and expenditures, with the financial target set at zero for 2025.

An expenditure ban occurs when expenditures subject to the fiscal framework limit exceed the ceiling of the rule. Emergencies occur when there is revenue frustration and the financial goal is not met. The 2025 target is zero, with a tolerance of 0.25% of GDP, which means this year a deficit of up to R$31 billion could be accepted.

See the list of affected ministries:

Ministries affected by the closure

Bodies Brazilian Real (in millions)
Ministry of Cities 1,260
Ministry of Agriculture and Livestock 474.9
Ministry of Defense 456.8
Ministry of Health 405
Ministry of Science and Technology 102.7
Ministry of Finance 194.2
Ministry of Development and Industry 20.3
Ministry of Justice and Public Security 79.1
Ministry of Mines and Energy 45.8
Ministry of Social Security 155.4
Ministry of Foreign Affairs 81.5
Ministry of Transportation 85.3
Ministry of Labor and Employment 25.4
Ministry of Communications 17.1
Ministry of Culture 22.1
Ministry of Environment 3.7
Ministry of Administration 31.1
Ministry of Planning and Budget 31.9
Ministry of Agricultural Development 74.8
Ministry of Sports 17
Ministry of Integration and Development 331.4
Ministry of Tourism 252.1
Ministry of Social Development 342
Ministry of Fisheries 5.9
Attorney General of the Federation 14.8
Ministry of Women 7.4
Ministry of Racial Equality 12.1
Ministry of Ports and Airports 282.4
Ministry of Entrepreneurship 13.6
Ministry of Human Rights 5.8
Ministry of Indigenous Peoples 7.3