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The fiscal adjustment package under negotiation with the Senate is expected to deliver an impact between R$ 50 billion and R$ 60 billion on the 2027 budget, according to the Planning minister. The stated goal is to rationalize spending, review tax breaks that fail to deliver results and take a hard look at privileges such as the so-called supersalaries paid to top public officials.

The proposal also removes extraordinary oil and gas revenues from the calculation of the health spending floor through 2030, a move that alone means roughly R$ 9 billion less spent in 2027. The government frames it as a rationalization measure, arguing the change keeps the public debt on a stable path without dismantling the constitutional minimums that guarantee health and education funding.

The message from the government is clear: the fight is not against social rights, but against a system of privileges that has been protected for decades. Senators expect a vote within days if an agreement is reached, making this one of the most closely watched budget battles of the year.

Fiscal adjustment deal targets supersalaries while shielding social spending from a R$ 60 billion hit

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