Fiscal package provides 120 days for Congress to discuss supersalaries

The fiscal adjustment package presented by the federal government to the National Congress provides a period of up to 120 days for lawmakers to review a proposal to regulate the so-called supersalaries (excessive salaries) in the public service. The complementary bill, filed this Wednesday (11) by Senator Jaques Wagner (PT-BA), also provides for a reduction of tax benefits, changes to public spending rules, and authorization to remove diesel subsidies from the 2026 fiscal target. During a hearing at the Joint Budget Committee (CMO), the Minister of Planning and Budget, Bruno Moretti, stated that the set of measures seeks to improve public accounts without compromising essential policies. "Revenue measures and expenditure measures, always seeking to protect expenditures that are crucial to ensuring rights, rationalize some expenditures, review tax expenditures that do not deliver the intended results, and even review some privileges, such as the issue of supersalaries," he described. The government expects the package to have a fiscal impact of R$ 50 billion to R$ 60 billion in 2027. The bill establishes that Congress will have up to 120 days, from the publication of the eventual complementary law, to review a proposal to regulate the indemnity payments made to public servants. These payments are intended to compensate for expenses related to the exercise of certain functions and, in some situations, fall outside the constitutional salary cap for public servants, currently R$ 46,366.19 per month, equivalent to the salary of ministers of the Supreme Federal Court (STF). The proposal determines that the Budget Guidelines Law (LDO) present the savings generated by the regulation and indicate its allocation, which may include: Reduction of public spending limits; Investments and activities in public security; Actions of the socio-educational system. The bill, however, does not determine immediate cuts to these payments nor does it present an estimate of savings from the measure. Benefit cuts Another front of the package provides for a 20% reduction in various tax benefits granted to companies and sectors of the economy. The proposal establishes changes according to the type of incentive: Tax exemptions: charging 20% of the standard rate; Reduced rates: application of a combination of 80% of the reduced rate and 20% of the standard rate; Tax credits (deduction or offset of previously overpaid taxes): use limited to 80% of the original amount; Special regimes: a 20% increase in the percentage charged on gross revenue; Presumed profit: a 20% increase in the percentages used to calculate taxes. The text does not identify which companies or sectors will be affected nor does it detail the expected revenue from the changes. Other measures The package also modifies fiscal framework rules and establishes limits for certain expenditures. Among the main points are: Public spending: the possibility of reducing the real growth limit (above inflation) of expenditures from 2.5% to 2% starting in 2027; Diesel: authorization to remove up to R$ 10.5 billion in subsidies from the calculation of the 2026 fiscal target; Public funds: the possibility of using up to 40% of the previous year's financial surplus, subject to the exceptions provided in the bill; Exports: an annual limit of R$ 1 billion for export financing expenses until 2030; Pension compensation: a limit of R$ 3 billion annually between 2027 and 2030; States: a temporary reduction to R$ 1 billion per year of certain transfers, with redistribution of the remaining amounts between 2031 and 2037. The rules for the use of funds preserve resources constitutionally earmarked for areas such as health, education, social security, and public security. Progress in Congress The package was negotiated between the government and the National Congress as part of the strategy to control spending growth and improve the fiscal result. Senator Eduardo Braga (MDB-AM) was chosen as the rapporteur of the proposal. The Minister of Finance, Dario Durigan, is also participating in the efforts to speed up the bill's progress. Despite the estimated impact of between R$ 50 billion and R$ 60 billion in 2027, the bill does not present a detailed calculation breakdown that would allow identifying how much each measure is expected to contribute to the fiscal result.