Portuguese 
English 
Spanish 
3 min of reading 
2 comments 
The Extra Freeze Increased to R$ 12.1 Billion and Helped Reduce the Projected Fiscal Shortfall.
According to g1, the government expanded the expense freeze and raised the extra freeze to R$ 12.1 billion, a measure announced to strengthen compliance with the fiscal target. The initiative was presented as a way to ensure budgetary discipline within the framework’s rules.
Still according to g1, with the deduction of R$ 43.3 billion in court orders and the new round of containment, the initially projected deficit of R$ 73.5 billion drops to R$ 30.2 billion.
The final result falls within the allowed margin of the target, which permits a deficit of up to R$ 31 billion.
-
Almost 70% of Brazilians are in debt, and the desperation is such that 52% have already reduced their food intake, 50% have cut off electricity and water, and 38% have stopped buying medicine just to avoid sinking further into debt.
-
IMF warns: Brazil’s gross debt could reach 100% of GDP by 2027 and continue to rise until 2031.
-
New store of a giant supermarket chain opens 100 positions in Balneário Camboriú and features checkouts that operate with or without an attendant in a space of over 6,000 square meters.
-
Public transportation in Brazil may face fare increases with the new 40-hour workweek, resulting in a billion-dollar impact on costs and growing pressure on companies and operations.
How the Court Order Deduction Works
The court orders are judicial debts that can be removed from the calculation of the fiscal target. This exclusion, provided by law, reduces the immediate impact on public accounts, but does not eliminate the obligation to pay.
In practice, the deduction is an accounting maneuver that allows for relief in the primary result without altering the real amount of the government’s financial commitments.
Why the Extra Freeze Was Expanded
The increase in the resource freeze is due to the rise in mandatory expenses, such as BPC, health, salary allowance, and unemployment insurance.
At the same time, the government anticipates a decrease in spending on pensions, personnel, and subsidies.
This adjustment creates space for the fiscal target to be met without drastic cuts in investments or immediate tax increases.
The details regarding which ministries and programs will be affected will be released by the end of the month.
The Role of the Fiscal Framework
The framework limits the real growth of expenses to up to 70% of revenue, with a ceiling of 2.5% per year.
If the target is not met, the expansion drops to 50%, further restricting the spending capacity.
The aim is to curb the advance of the public debt and provide predictability to the market, reducing pressure on interest rates.
Recent History of Public Accounts
In 2022, there was a surplus after eight years of deficit, but the result was considered atypical. In 2023, the accounts closed with a deficit of R$ 230.5 billion, influenced by the payment of overdue court orders and extraordinary expenses.
For 2025, the initial projection was a deficit of R$ 73.5 billion.
With the deduction of court orders and the extra freeze, the amount drops to R$ 30.2 billion, bringing the government closer to the established target.
The strategy of combining extra freeze and deduction of court orders reduces the deficit and signals fiscal commitment, but also raises doubts about the quality of this adjustment and its impacts on essential services.
Do you believe that the extra freeze genuinely ensures balance or only postpones deeper reforms?
Leave your opinion in the comments and join the debate.
Onde tem esquerda, tem bandalheira. Ao invés de dar calote nos credores, o pinguço poderia diminuir o consumo de cachaça e ****.
Sinto cheiro de retrocesso.