The bills to balance the 2026 Budget will yield the government the same as the Provisional Measure (MP) 1,303, rejected by Congresssaid this Wednesday (22) the executive secretary of the Ministry of Finance Dario Durigan. He informed that alternative proposals can be attached (included) in bills being processed in Congress.
The original MP would yield the government R$31.75 billion in 2026. Of this total, R$20.87 billion is in revenues and R$10.69 billion in cost savings.
At an event on Constitutional Law, promoted by the Brazilian Institute of Education, Development and Research (IDP), the number two of the Ministry of Finance reaffirmed that the measures will be re-presented in the form of bills: one on increasing revenue and another on cutting tax benefits and expenses.
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Balance
Durigan highlighted that the approval of these proposals in 2025 is considered essential for closing the 2026 Budget and for meeting the fiscal target established by the government.
“It needs to be approved this year. Not only because of this [anualidade]as to be included in the budget law, which has to be approved by the end of the year”, stated Durigan.
The principle of annuality establishes that tax increases can only come into force in the year following the sanction.
Bets and fintechs
One of the texts, already in the final stages of preparation, should deal with increasing revenue, including increased taxation on fintechs, electronic betting (bets) and interest on equity (JCP). The other, aimed at reviewing spending, could be incorporated into proposals already in progress, such as those presented by deputy Mauro Benevides (PDT-CE) and senator Esperidião Amin (PP-SC).
Durigan also stated that the government is evaluating whether to send a new project or take advantage of texts that are already under analysis in Congress. However, he highlighted that these measures alone do not guarantee effective spending cuts.
According to Durigan, the economic team is betting on Complementary Law Project (PLP) 182/2025, which provides for periodic review and effective cut of tax benefits, a mechanism considered essential to ensure a real economy and greater control over tax expenditures. With the potential to cut R$19.6 billion in tax incentives in 2026, the proposal it was filed on the same day as the 2026 Budget project.
“It is possible that we can add additional elements from a concrete, effective benefit cut, which can be gained within the legislative debate, in which we guarantee the effectiveness of the policy, but also a periodic review mechanism”, explained the secretary.
Zero deficit
Durigan also reinforced that, even without MP 1,303 in force, the government maintains the goal of zero deficit for 2025 (with a tolerance margin of 0.25% of Gross Domestic Product, more or less). He also stated that the government is looking for alternatives to preserve the credibility of public accounts.
“When we no longer have MP 1,303 in the world, we have to look at replacements, even to be able to provide conditions for Congress to approve the budget law under the conditions that we presented, with a single meaning: to restore the credibility of public accounts and improve the country’s fiscal scenario”, he concluded.
