Brazil to reallocate 20 billion reais in 2027 budget — The Rio Times

Brazil's Ministry of Planning and Budget plans to reallocate around 20 billion reais, or $4 billion, within the 2027 federal budget to finance new government measures. The amount represents slightly more than 1% of expenditures covered by the legislative limit on the growth of public spending.

As reported by The Rio Times, the ministry said that the overall spending cap and the primary budget balance target will not change. The primary balance reflects the state of the budget before interest payments on public debt.

Financing new measures

The reallocation is intended to provide funding for measures announced by the government during the year. These include higher payments under the Bolsa Família program for low-income families, debt settlement programs, credit lines for taxi platform drivers, and support for microentrepreneurs.

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According to the data cited in the report, the cost of increasing Bolsa Família payments by 15.04% in 2027 is estimated at around 22.7 billion reais. The Desenrola 3.0 household debt restructuring program is estimated at 15 billion reais through 2028, of which 5 billion reais falls in the first year.

Further approval

The ministry said that the proposal for budget changes will be submitted to the National Congress after a rapporteur is appointed for the 2027 budget bill. At the same time, the agency did not name the budget items whose spending could be cut or postponed. The reallocation will take place within the current spending cap and does not mean an increase in total public spending beyond it.