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Brazil Plans to Bar R$11 Billion in 2026 Congressional Amendments Beyond Agreed Cap

Officials cite an STF-backed limit tying amendment growth to inflation with a 2.5% real ceiling.

Overview

  • Chief of Staff Rui Costa said the government will execute only what was pactuado in the 2026 budget and is evaluating vetoes, resource blocks or remapping for excess items.
  • Congress approved about R$61–62 billion for amendments in 2026, of which roughly R$49.9 billion are directly controlled by lawmakers.
  • The executive estimates around R$11 billion in the approved amendments exceed the legal and negotiated threshold referenced in a Supreme Court ruling.
  • The 2026 budget guidelines law requires payment of 65% of mandatory amendments by the end of the first half of the year, creating front‑loaded fiscal pressure.
  • Under Lula’s current term, payments of parliamentary amendments reached R$119.5 billion from 2023 to 2025 as the STF tightened transparency and control over these transfers.