The government will have to adjust its 2027 budget by R$ 27,7 billion to cover new expenses.
The federal government will need to adjust the 2027 budget to accommodate R$ 27,7 billion in new expenses. The adjustment is necessary to ensure compliance with the fiscal target, following a series of measures announced in the weeks prior to the closing of this edition.
According to CNN Brazil, the economic team will also have to make adjustments on the revenue side: the end of betting is expected to reduce federal tax revenue by R$ 5,3 billion in the same year.
Adjustment components
Three items account for the total pressure on the budget. The most significant is the readjustment of the Bolsa Família program, with an additional cost of R$ 22,7 billion. Next are: Desenrola 3.0: an extra expense of R$ 5 billion, and the end of betting: a loss of revenue of R$ 5,3 billion.
The economic team maintains that the amounts will be accommodated through reallocations within the 2027 Annual Budget Bill (PLOA) itself, without necessarily increasing total spending. The Ministry of Planning explained, in a statement, that "a portion of these amounts will come from reallocating existing space in mandatory spending" and that "it is not possible to affirm that the sum of these estimates represents a net increase in this total amount in the 2027 PLOA".
Fiscal target and projected surplus
The original PLOA (Annual Budget Law Project) forecasts a primary surplus of 0,5% of Gross Domestic Product (GDP) in 2027, equivalent to R$ 73,2 billion. The fiscal framework allows for a tolerance margin of 0,25 percentage points around this central target, which sets the lower limit of the band at R$ 36,6 billion in positive balance.
Even with the exceptions that fiscal rules allow to be excluded from the target calculation, the economic team projects an effective surplus of R$ 18,6 billion in 2027, a value still within the compliance range.
The original draft of the PLOA (Annual Budget Law Project) was sent to Congress on August 31st. The revised version does not yet have a set date for submission to the Legislature, where it will undergo parliamentary review.
