Government leader warns of blocking up to R$10 billion in amendments if MP expires
The government leader in Congress, senator Randolfe Rodrigues (PT-AP), stated this Wednesday (8) that the failure to advance Provisional Measure 1,303, which replaces the original increase in the Tax on Financial Operations (IOF), could lead to the blocking of up to R$10 billion in parliamentary amendments.
The statement was made after a meeting with President Luiz Inácio Lula da Silva (PT), ministers and leaders of the allied base. According to Randolfe, the loss of validity of the MP — which needs to be voted on by the Chamber and the Senate by 11:59 pm this Wednesday — would reduce the revenue forecast for 2026 by at least R$17 billion, which would force the government to make immediate adjustments to expenses.
“If it is not approved by the MP, there will be a contingency of R$7 billion to R$10 billion just for amendments. We will look for alternatives to maintain revenue, but this is an inevitable consequence”, said the government leader.
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Lula calls emergency meeting to avoid defeat in MP alternative to IOF
President called ministers Fernando Haddad, Rui Costa and Gleisi Hoffmann, in addition to the leaders of the Senate, Jaques Wagner (PT-BA), and the Chamber, José Guimarães (PT-CE) for a conversation at Palácio do Planalto
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“Negotiation, we did everything possible. Now, we need these people to have a say”, said the rapporteur of MP 1,303
Randolfe recalled that the Executive is obliged to meet the fiscal targets defined in the fiscal framework and in the Fiscal Responsibility Law (LRF), approved by Congress itself.
“If we have a drop in revenue, obviously, we have to increase the contingency. There is no room for failing to meet targets”, he added.
The MP is part of the economic team’s plan to balance public accounts in 2026, the year of general elections, and is seen as essential for closing the Budget. The text was approved yesterday by a mixed committee by 13 votes to 12, but faces resistance from the Centrão and opposition parliamentarians.
‘Sabotage action’
During a press conference, Randolfe stated that the government is still evaluating alternatives if the MP expires, but accused sectors of the opposition and the Centrão of “sabotaging” the proposal.
“What is at stake is not the merit of the MP, but an action of sabotage coordinated by governor Tarcísio de Freitas and other characters, such as Ciro Nogueira”, declared the senator.
The vote on MP 1,303 takes place amid the political dispute between Planalto and the leaders of the new Federation União Progressista (UPb) — formed by União Brasil and PP —, which officially broke with the government in September.
Fiscal impact at stake
Published in June, the MP replaces the decree that provided for an increase in IOF rates, a measure that faced strong reaction from business sectors and was eventually revoked. The text approved by the commission provides for standardization of IR rates on financial investments, taxation of cryptoactives, changes to the CSLL of fintechs and stricter rules for tax compensation.
Even after concessions, the government expects to raise around R$17 billion in 2026, an amount R$3 billion below the original projection.
The approval of the measure is seen as decisive to avoid budget cuts and reinforce the Lula government’s fiscal credibility. Otherwise, parliamentary amendments and discretionary expenses could be blocked at the beginning of the next fiscal year.
