While strangling the government with fiscal austerity measures, Congress expands billions in spending and benefits the super-rich.

247 - While strangling the government by imposing legislative defeats and demanding spending cuts, the National Congress contributes to expanding the "wasteful spending" that the deputies and senators themselves attribute to the Executive branch. This is according to a survey by Tendências Consultoria, commissioned by the newspaper... The GlobeBy 2025 alone, the fiscal impact of the measures approved by the Legislature will exceed R$ 100 billion.

According to the study, the total value reaches R$ 106,9 billion in 2025, resulting from the adoption of projects that increased spending, prevented cuts, or maintained tax benefits. For 2026, the forecast is even more worrying: the bill rises to R$ 123,25 billion, driven by decisions such as the increase in the number of federal deputies and the start of the state debt renegotiation program, Propag, conceived by the former president of the Senate, Rodrigo Pacheco (PSD-MG).

The Propag program, approved by the Executive branch in January, eliminates interest charges (previously fixed at 2% per year), leaving only inflation adjustments. It is estimated that, starting in 2026, the financial impact of this project will be R$ 20 billion.

Super salaries, amendments, and salary increases for members of parliament. The increase in parliamentary amendments is one of the most significant factors in this equation. Economist Bráulio Borges, from FGV/Ibre, proposes in a recent article that the amount be reduced to R$ 10 billion — a level comparable to that of other countries. Today, they total R$ 62 billion, compared to R$ 8,6 billion in 2014.

According to Borges, "the federal Executive branch carries an excessive burden. This responsibility must be shared. We have an empowered Legislative branch, regional governments gaining ground in total spending, but when problems arise, they knock on the federal government's door."

Political scientist Carlos Melo, from Insper, pointed out that the creation of 18 new seats in the Chamber of Deputies starting in 2026 will imply more expenses: "They will want to have amendments, privileges, the same control over the budget as the others. In one fell swoop, they deny increased revenue and raise expenses."

He further points out that, with the high values ​​of the amendments, the party fund — which grew by R$ 165 million, reaching R$ 1,368 billion this year — and the electoral fund (R$ 5 billion in 2024), parliamentarians no longer depend on government positions. “They don't depend on the government. There are five hundred federal councilors. They talk about 'congressional government',” he concluded.

'Jabutis' and tax waivers - Despite not being included in the Union Budget, the so-called "add-ons" approved by Congress in an electricity sector project in June are expected to generate a cost of over R$ 190 billion for consumers, as Bráulio Borges pointed out: "it was a true speculative attack by Congress against Brazil. It took advantage of the government's weakness to approve a bunch of add-ons that only satisfy some interests very well represented in Congress."

Another example cited by Borges is Perse — a program to support the events sector during the pandemic — whose extinction was blocked by the Legislature, preserving a tax waiver of over R$ 15 billion. The payroll tax exemption for 17 sectors was also maintained, although the Supreme Court demanded compensation. According to Tendências, the estimated deficit of R$ 20 billion was partially offset by extraordinary revenues of only R$ 9 billion.

Fundeb, BPC and IR - The federal government's participation in Fundeb has also been expanded, rising from 10% in 2020 to a projected 21%. The increase is gradual, but already represents annual additions of R$ 6 billion to federal coffers.

In the case of the Continuous Benefit Payment (BPC), which serves seniors aged 65 or older and people with disabilities living in poverty, Congress vetoed the attempt to reverse the relaxation of access rules approved during the Jair Bolsonaro (PL) administration in 2021. According to calculations by Bráulio Borges, the cost of the BPC in the 12 months ending in May was R$ 121 billion — a value between R$ 25 billion and R$ 30 billion higher than it would have been under the previous criteria.

Guilherme Klein, a professor at the University of Leeds and researcher at Made-USP, warns about the impact of the PP's proposal to alter the Executive's project regarding the new Income Tax table. The government's idea was to start charging the minimum tax rate from R$ 50 per month. The new version raises this threshold to R$ 250, which, according to Klein, would generate an estimated loss of R$ 38 billion.

Election projections influence the scenario. According to Ricardo Ribeiro, political analyst at LCA 4Intelligence, the movements in Congress already reflect the electoral interests of 2026: “The Centrão, which has a foothold in the government, is preparing for an electoral scenario. The question is not whether or not there is actually a Congress in favor of spending cuts. The essential point is that we are anticipating the electoral battle of 2026.”