The government will divide most of the fiscal adjustment that were in the provisional measure (MP) rejected by the Chamber at the beginning of the month, said this Tuesday (21) the Minister of Finance, Fernando Haddad. In an interview with GloboNewshe said that the strategy seeks to reduce political resistance and speed up processing in Congress.
The two texts, informed the minister, should deal with different fronts: one aimed at controlling public spending and the other with actions to increase revenue, such as taxation of bets (electronic betting companies) and fintechs (startups in the financial sector).
“As there was a lot of controversy surrounding the issue of expenditure and revenue in the same legal document, the likely decision is to divide it between two bills,” Haddad told GloboNews.
The minister stated that the proposals could be sent this Tuesday. According to him, some of the deputies have already shown themselves willing to include the themes in projects that are being processed, which could speed up the votes.
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Focus on revenue and cost cutting
According to Haddad, the spending review could generate between R$15 billion and R$20 billion in savings, while the taxation of bets and fintechs should yield around R$3.2 billion next year — R$1.7 billion from betting and R$1.58 billion from financial platforms.
The economic team assesses that the separation of projects will allow the points of greatest consensus to be voted on first, preventing more controversial issues from blocking the package. For now, changes to the taxation of financial assets are left out, such as the end of the exemption for exempt securities, such as Real Estate Credit Letters (LCI) and Agribusiness Credit Letters (LCA), one of the main sources of tension during the processing of the original MP.
Budget impasse
Earlier, Haddad declared that the government should define a solution to the 2026 Budget impasse this Tuesday, after the MP that provided for tax increases lost its validity without being voted on.
“The Civil House and the Treasury are meeting to process what was discussed with the leaders. By early afternoon we will have a definition of what to do, because all these laws have to be harmonized: how much will be in expenses, how much will be in revenue”, he stated.
Next year’s budget proposal, under analysis in Congress, foresees a primary surplus of 0.25% of GDP, around R$34.5 billion. Haddad defends that the country delivers a positive result in 2026, after years of deficit.
“We need to give this screw one last turn. Delivering a budget with a positive primary result is important given what happened in the recent past”, said the minister.
The new projects must form the basis of fiscal adjustment that will support the 2026 Budget, the vote for which is scheduled for November. Palácio do Planalto hopes that, by dividing the proposals, the measures with greater consensus will advance more quickly and rebuild part of the fiscal plan frustrated by the rejection of the IOF MP.
Comparison with Milei
During the interview, Haddad again compared Brazilian fiscal policy with that of Argentina under President Javier Milei. The minister reiterated that the government seeks a gradual and sustainable path to balancing public accounts, instead of abrupt cuts in the Budget.
“I joked with Alcolumbre that they gave Milei a chainsaw, and we have a screwdriver. And that has yielded more consistent results,” he said.
