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Reading: Brazil’s Congress clears up to R$149.4bn in borrowing
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MacroHerald > Latest News > Markets > Rates & Bonds > Brazil’s Congress clears up to R$149.4bn in borrowing
Rates & Bonds

Brazil’s Congress clears up to R$149.4bn in borrowing

Enver Adıgüzel
Last updated: 13 November 2026 02:06
Enver Adıgüzel - Editor and Publisher
8 minutes ago
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Brazil’s Congress, in a joint session of deputies and senators on Thursday (12), approved a government bill authorizing credit operations of up to R$149.4 billion to finance pension payments, social assistance benefits and the Bolsa Família program. The bill now goes to presidential sanction by Luiz Inácio Lula da Silva.

Contents
  • Ceiling, not a mandate
  • A bill trimmed down

Ceiling, not a mandate

The figure is a ceiling rather than a spending commitment. The government is not required to borrow the full amount immediately. Of the total, R$26 billion is earmarked for Bolsa Família, R$119 billion for social security benefits such as retirement and pensions, and R$4.4 billion for assistance benefits to the elderly, including the Benefício de Prestação Continuada. The measure does not increase Bolsa Família resources.

The authorization traces back to the golden rule in the Federal Constitution, which bars the government from borrowing above capital spending unless Congress grants permission. The 2026 budget had made part of this spending conditional on exactly such an authorization, leaving the bill as a necessary step rather than new money.

A bill trimmed down

The government originally sent the bill to Congress in July, requesting R$185.5 billion. The Comissão Mista de Orçamento approved that report on Tuesday (10), two days before the full Congress vote.

With congressional approval secured, the bill’s fate now rests with presidential sanction.

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Source: Brazil's Congress

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TAGGED:bolsa familiabrazilcongressfiscal policygolden rulepublic debt

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ByEnver Adıgüzel
Editor and Publisher
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Enver Adıgüzel is the editor and publisher of MacroHerald. He holds a degree in Economics from the Faculty of Economics and Administrative Sciences at Kırıkkale University and an MBA. He writes on central bank policy, currencies, government bond markets and the economic data that move them.
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