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.
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.
Source: Brazil's Congress
