Portuguese 
English 
Spanish 
3 min of reading 
1 comment 
Planning Minister Warns That Tax Cut of R$ 20 Billion Is Insufficient. Simone Tebet Advocated for Spending Review and Stated in the Senate That Only Structural Changes Can Ensure Fiscal Balance.
The Planning Minister, Simone Tebet, stated this Tuesday (19), in a hearing at the Senate’s Economic Affairs Committee (CAE), that the tax cut of R$ 20 billion forecasted by the government for 2026 would be “less than necessary” to keep public accounts in order. According to her, the country needs a broader review of the subsidies granted to specific sectors.
According to information from the newspaper O Globo, Tebet highlighted that the government is working to preserve fiscal balance, but emphasized that the recalculation of incentives cannot be treated as a taboo. She cited recent numbers: subsidies totaled R$ 678 billion in 2025, equivalent to 5.78% of GDP, and advocated for deeper adjustments.
Review of Spending and Types of Subsidies
The Planning Minister stated that reviewing spending means “taking good care of the Brazilian people’s money.” For her, it is essential to separate horizontal subsidies, which have lost relevance and now benefit only interest groups, from vertical subsidies, like the Super Simples, which should be preserved but monitored to prevent fraud.
-
Brazilian city bets on the business environment to generate jobs and attract investments in the energy sector — secretary reveals strategy at Macaé Energy 2026.
-
50 viaducts, 4 tunnels, 28 bridges, and 40 kilometers of bike paths: BR-262 in Espírito Santo will receive 8.6 billion reais for the largest engineering project in the state’s history, inspired by the Immigrant Highway in São Paulo.
-
Brazil produces too much clean energy and doesn’t know what to do with it: over 20% of solar and wind capacity was wasted in 2025 while investors flee and 509 renewable generation projects were abandoned in the last year.
-
Piauí will produce a new fuel that replaces diesel without needing to change anything in the truck’s engine and reduces pollutant gas emissions by half: truck drivers from all over the Northeast are already celebrating the news that will arrive later this decade.
Tebet reinforced that the review should not affect incentives guaranteed by the Constitution, but insisted on the need to cut distortions that compromise the budget. “We are doing our homework, but it is insufficient,” she declared during the session.
Cut of R$ 20 Billion Is Considered Timid
The federal government plans to remove R$ 20 billion in tax benefits starting in 2026, a measure that could increase revenue. However, Tebet assessed that the amount does not resolve the structural problem of public accounts. The budget for 2026 is to be sent to Congress by August 31, with the goal of primary surplus of 0.25% of GDP maintained in the Budget Guidelines Law (PLDO).
For the minister, a cut of this magnitude does not significantly change the scenario. The assessment is that only a broader review, combined with fiscal discipline, can prevent imbalances in the medium term.
Shared Responsibilities Among Powers
In addition to the tax issue, the Planning Minister drew attention to the need for the Executive, Legislative, and Judiciary to act together in compliance with the fiscal framework. “I am in favor of a guarantee-oriented Judiciary, but we need to be very careful with an assistance-oriented Judiciary,” she stated.
According to Tebet, the division of responsibilities is essential for the country to meet its fiscal targets without compromising strategic investments. She advocated that both Congress and the Judiciary exercise caution when creating new expenses that pressure the federal budget.
Expected Impacts and Next Steps
With the surplus target maintained, the government is expected to seek new ways to adjust spending and revenue to balance the 2026 budget. The minister signaled that the agenda for reviewing subsidies will remain at the center of economic debate. The expectation is that the topic will gain strength in the discussion of the budget and in the processing of projects in Congress.
If confirmed, the review could redefine how sectors of the economy receive incentives, reducing privileges and strengthening public policies with a broader social reach.
And you, do you believe that the review of spending and cuts in subsidies advocated by the Planning Minister are the right path? Or do you think that the cut of R$ 20 billion would already be sufficient? Leave your opinion in the comments — your perspective can enrich the debate.
A questão está onde estes subsídios serão cortados, a lógica é cortar de quem tem capital, de quem não segue as regras ambientais, trabalhistas, da elite financeira, das empresas de comunicação, ou seja de quem sempre explora ou manipula o cidadão brasileiro
E conseder subsídios a quem realmente acredita e quer investir no Brasil.