Delay in voting on the 2025 budget jeopardizes salary adjustments, benefits, and investments.

247 - The vote on the 2025 budget faces another delay, generating a significant impact on several areas, such as salary adjustments for civil servants, advance payment of the 13th-month salary for INSS (Brazilian Social Security Institute) beneficiaries, execution of public works, and social programs. The delay in finalizing the budget also compromises the continuity of essential benefits, such as the Gas Subsidy. According to information from... MetropolisThe vote is expected to take place only on March 19th.

Without the approval of the 2025 Annual Budget Bill (PLOA), the government continues to execute expenditures in a limited way. Currently, the Executive branch is authorized to spend only one-twelfth of the budget foreseen for the year, as determined by the Budget Guidelines Law (LDO). This situation restricts transfers and hinders the implementation of planned public policies.

The budget vote was supposed to have taken place before the end of 2024, but it was postponed due to impasses, including the issue of parliamentary amendments. Last week, the Supreme Federal Court (STF) approved a work plan proposed by the Executive and Legislative branches for the execution of these amendments, aiming for greater transparency and traceability of resources.

Impacts of the delay in budget approval - The delay in defining the budget has direct effects on several sectors. Check out the main impacts:

• Salary adjustment for public employees: More than 45 careers within the federal public administration have signed agreements with the government for adjustments in two stages, with the first scheduled for 2025. Due to the delay, retroactive payments are expected to be postponed until April or May.
• Advance payment of the 13th salary from INSS (Brazilian Social Security Institute): The advance payment of the annual Social Security bonus, which in recent years has been paid between April and May, is compromised and depends on the approval of the budget proposal.
• Gas Aid: With a projected disbursement of R$4 billion, the program benefits more than 20 million families. The payment for the first two months of 2025 has been made, but future disbursements are threatened.
• Execution of works and purchase of equipment: Only ongoing projects that could result in losses if halted are authorized to continue.

History of delays - Since the 1988 Constitution, the National Congress has delayed the approval of the budget on at least 11 occasions. The longest delay occurred in 1994, when the budget was only voted on in October, on the eve of the end of the fiscal year.

The expectation is that, after the reading of the report by Senator Angelo Coronel (PSD-BA), scheduled for March 18, the vote will take place in the Joint Budget Committee (CMO) on March 19. Subsequently, the bill will go to the National Congress for consideration, with analysis scheduled for a joint session on March 20.