The Chamber of Deputies approved on Wednesday morning (17) a bill that could have an impact on public accounts, if accepted by the Senate. The text reduces part of the country’s tax benefits by 10% and increases the tax on betting (betting houses), fintechs and JCP (Interest on equity, a mechanism used by large companies to finance themselves).
The aim is to increase revenues to avoid cost reductions in the 2026 budget.
What is the public budget?
The public budget is the instrument used by the government to estimate the revenue that will be collected during the following year. Based on these estimates, it authorizes the amount of resources to be devoted to providing goods and services to society.
What is LDO?
The LDO is the budgetary orientation law which defines the objectives and priorities of the federal public administration. It also guides the preparation of the LOA (Annual Finance Law)
What are parliamentary amendments to the PLOA?
Parliamentary amendments are modifications made by deputies and senators to the PLOA (Annual Budget Bill). An amendment can modify the revenue forecasts, the distribution or the amount of expenses.
What are the types of parliamentary amendments?
They can be classified into individual amendments, state bench amendments, and committee amendments (from the Senate, the House, and a joint committee of the National Congress).
What is primary income?
This is what comes from tax revenues or is generated by government assets, such as rents from federal public properties.
What is a primary expense?
This is expenditure intended to provide public goods and services to the population. In the 2026 budget proposal, total primary spending amounts to 3.2 trillion reais.
What are the types of primary expenses?
Primary expenditures can be classified as compulsory and discretionary.
What are the main sources of primary income?
Most of the money comes from income tax (29%), the General Scheme social contribution (24%) and the Cofins social contribution (13%).
Which organization has the largest budget allocation?
The Ministry of Social Security has 1.2 trillion reais (proposal for 2026).
What are the main expenses?
Social benefits from the General Social Security Scheme represent 37% of planned primary expenditure. Personnel and social costs represent 14%. Social assistance (Bolsa Família, BPC, unemployment insurance and salary bonus) represents 10%.
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