Government releases R$5.7 billion in the budget; Cities, Transport and Finance benefit the most

The measure had been announced on the 24th by the Ministries of Finance and Planning, together with the bimonthly income and expenditure report. At the time, the economic team reported that the downward revision of some mandatory expenses opened room to increase discretionary spending, which are those over which the government has greater decision-making power. Despite the release of resources, R$17.9 billion remains blocked in this year's Budget. The annexes to the decree show that this amount continues to be subject to containment measures distributed among ministries and parliamentary amendments. In May, the government had reported a total containment of R$23.7 billion. With the update of fiscal projections, part of these resources could be released, reducing the blocked amount Free spending The release of expenses will occur in the so-called free spending of ministries, that is, those that are not mandatory. This category includes administrative expenses, investments, maintenance of federal universities, functioning of regulatory agencies, issuance of passports, scholarships from Capes and CNPq, environmental inspection and combating slave labor, among other actions. ? Mandatory spending, which cannot be the target of blocking resources, involves, for example, expenses with social security benefits, pensions, public servants' salaries, bonuses and unemployment insurance, among others. Aerial photo shows the Esplanada dos Ministérios with Congress in the background Ana Volpe/Agência Senado Expenditure review The economic team also reduced primary expenditure projections for 2026. Among the main declines are: personnel and social charges: R$4.2 billion; social security benefits: R$3.2 billion; Continuous Payment Benefit (BPC): R$3.2 billion. According to the Minister of Planning, Bruno Moretti, the reduction in estimates related to social security benefits is linked to the pace at which these benefits are granted. On the other hand, the government increased spending projections on: salary bonuses and unemployment insurance: R$1.6 billion; health: R$3.4 billion. Fiscal target In addition to meeting the expenditure growth limits set out in the fiscal framework, the government also needs to achieve the fiscal target defined by the Budget Guidelines Law (LDO). For 2026, the goal is to record a surplus of 0.25% of the Gross Domestic Product (GDP), equivalent to around R$34.3 billion. According to legislation, there is a tolerance range of 0.25 percentage points more or less. With the review of revenue and expenditure projections announced last week, the government now estimates a primary deficit of R$52 billion in 2026, compared to a previous forecast of R$60.3 billion. The annexes to the decree published this Thursday maintain the projected deficit of around R$52 billion for this year.