President Luiz Inácio Lula da Silva (PT) signed the 2025 Budget Law on Tuesday, aiming for a zero deficit next year. He also vetoed 35 presidential points, including sections that aimed to increase the Party Fund and prohibit the freezing of parliamentary amendments.
Minister of the Supreme Federal Court (STF) Flávio Dino’s decisions were cited as justification for the veto on amendment payments. The veto on increasing the Party Fund was based on the proposal not being in line with a sustainable fiscal regime, which controls annual expenditure growth based on inflation and revenue growth from the previous period.
The government stated that the Budget’s sanction “reaffirms the commitment to fiscal responsibility and economic stability, considered essential for sustainable growth and guaranteeing priority public policies.” The new legislation aims to modernize budget management, providing greater predictability and alignment between fiscal goals and public budget needs.
The Budget allows for up to R$30.97 billion for meeting the fiscal target, with a deficit target of R$6.21 billion for Global Expenditure Program. It also limits expenses related to the Growth Acceleration Program (PAC) to R$5 billion. The LDO project was approved in Congress on the 18th, with the president’s vetoes to be analyzed from February.