the Senate On Wednesday (3), by 47 votes to 16, a supplementary bill (PLP) was approved that removes Temporary expenses with health and education From the limit Tax framework,account goal to Primary outcome and Constitutional ground. The text returns to the House of Representatives due to changes made by senators.
The proposal was authored by Rep. Esnaldo Bolhes (MDB-AL), who is also the rapporteur of the Annual Budget Law (LOA) for 2026. It should open up a fiscal space of R$1.2 billion in next year’s budget, according to technicians consulted by Valor.
This authorization is valid for five years to allow 5% of the Social Fund’s resources to be directed to health and education, in line with another draft approved by Congress that determines this allocation.
The rapporteur of the matter in the Senate, Randolph Rodriguez (PT-AP), defended his approval on the basis of the “rigidity” of the Brazilian budget and the need for spending in these two areas.
“As stated in the PLP’s justification, additional spending on education and health should total R$1.5 billion per year. This seems small compared to a budget of hundreds of billions. But given the budgetary rigidity, there are few resources available for discretionary expenditures that are so important,” the government leader in Congress noted.
During the process in the Senate, Randolph responded to the Treasury’s interest and removed the section allowing expenditures with international loans to be excluded from the initial spending limit. The economic team members’ fear was that the scope to allow any loan expenditures to be withdrawn could make the fiscal framework too flexible.
The project now goes back to representatives for analysis due to this merit change made by Randolph. According to the President of the Senate, Davi Alcombre (Uniao-AP), the President of the Chamber, Hugo Motta (Republicanos-PB), has committed to looking into this issue as soon as possible.