Congress approves bill to increase spending and reduce fuel taxes

The Brazilian Congress approved, on Wednesday (12), a bill that authorizes additional expenditures outside the limits of the fiscal ceiling for the year 2026. This year is an electoral period, and the approval includes the release of tax benefits to various economic sectors.

The Federal Senate approved the same text, which received 61 votes in favor and only 2 against, and now awaits the sanction of President Luiz Inácio Lula da Silva (PT).

In addition to expenditures outside the ceiling, the bill allows the government to use additional revenues from oil sales to reduce fuel taxes. This measure aims to decrease costs for consumers.

However, the bill also includes provisions that promise to contain the growth of certain expenditures starting in 2027. This proposal reflects a government move to adjust public accounts in a more sustainable scenario for the future.

The bill originated from concerns about rising fuel prices, an issue that has intensified due to the conflict in the Middle East, which initially focused exclusively on this matter.

Congress also included tax exemptions that, according to some analyses, may worsen the situation of public finances, expanding the discussion on long-term fiscal viability. The proposal moves forward for presidential sanction after being approved by the Chamber of Deputies.