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With The Potential to Raise R$ 20 Billion, Senate Approves Provisional Measure of The Social Fund, Changing The Use of Pre-Salt Funds for Housing, Health, and Infrastructure

Published on 03/07/2025 at 18:03
Senado aprova MP do Fundo Social, permitindo que o governo realize leilões de petróleo e gás do pré-sal com potencial de arrecadar R$ 20 bilhões.
Senado aprova MP do Fundo Social, permitindo que o governo realize leilões de petróleo e gás do pré-sal com potencial de arrecadar R$ 20 bilhões. Fonte; Agência Brasil
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Senate Approves Social Fund MP, Allowing Government to Auction Oil and Gas from Pre-Salt with Potential to Raise R$ 20 Billion.

In a decisive vote last Tuesday (1st), the Federal Senate approved the Social Fund Provisional Measure (MP 1291/2025), allowing the government to auction excess oil and natural gas from pre-salt.

The official estimate is that the measure could generate up to R$ 20 billion in revenue.

Social Fund MP Expands Use of Oil Resources

The measure represents an important political and fiscal victory for the federal government, which bets on the strategic use of pre-salt resources to boost social and infrastructure programs.

According to the government, the MP will not have a direct fiscal impact, reinforcing the commitment to maintaining public accounts balance.

Originally created in 2010, the Social Fund was established to transform revenues from oil exploration into long-term investments for national development. 

With the new MP, the resources can now also be used for social infrastructure, affordable housing, and emergency response actions.

Previously, the Fund was limited to areas such as health, education, culture, environment, science, and technology.

The project rapporteur in the committee, Deputy José Priante (MDB/PA), also included the possibility of using the fund as a source of resources for the Minha Casa, Minha Vida program, as well as increasing the percentage allocated to health and education from 50% to 55%.

Pre-Salt Auctions Cause Debate in the Senate

Despite the symbolic approval, the Social Fund MP faced resistance. Opposition senators harshly criticized the provision that allows auctions of excess pre-salt resources in non-contracted or strategic areas.

Senator Rogério Marinho (PL/RN), opposition leader, stated that the government “sells dinner to buy lunch.” “The government wants to sell oil fields that should be received in 10, 12, 15 years at a discount, making concessions to solve problems that the government itself created.”

However, the government’s leader in Congress, Senator Randolfe Rodrigues (PT/AP), defended the measure: “This is not an electoral measure, no. It is a program of this government. This Social Fund is for the poorest, to build homes for the people, invest in education, not to hand out money for profit distributions and dividends to the rich abroad.”

Regional Rules for Resource Allocation

The measure also sets rules to ensure a more balanced distribution of social investments.

In 2025 and 2026, the government must allocate at least 30% of the Social Fund resources to the Northeast, 15% to the North, and 10% to the Midwest.

The aim is to combat regional inequalities and expand the reach of social investments from pre-salt oil.

Government Bets on Pre-Salt to Strengthen 2025 Budget

According to sources from the Palácio do Planalto, the government does not consider the MP to be a one-time or emergency measure, but a long-term strategy to strengthen the 2025 budget without increasing taxes, such as the IOF.

The expected revenue from the pre-salt auctions could reach R$ 20 billion, an important relief for public accounts in a tight fiscal scenario.

With the presidential sanction, the government now has another tool to convert the wealth of the pre-salt into concrete actions for the population — maintaining fiscal balance and increasing social investments.

Source: Eixos

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Andriely Medeiros de Araújo

Currently pursuing higher education. Writes about Oil, Gas, Energy, and related topics for CPG — Click Petróleo e Gás.

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