Lula sanctions LDO of 2026 and vetoes Fundão increase for ‘contrary to public interest’
President Luiz Inácio Lula da Silva sanctioned the Budgetary Guidelines Law (LDO) of 2026, vetoing the predicted correction of Party Fund values since 2016. The full text of the sanction was published in an extra edition of the Official Gazette on Wednesday (31). The reason given was the economic impact of the adjustment, which would have a negative impact on the goals set out in the rules of the fiscal framework.
In the order, Lula argues that the correction, as approved by the National Congress, “contravenes the public interest”, since the increase in the Party Fund “reduces the amount allocated to the payment of other Electoral Justice expenses”.
The president also pointed out that the proposal is “unconstitutional”. “By linking the amount of Party Fund expenses to the real growth in revenue from previous years, the device would promote the growth of these expenses at a level higher than the growth of the primary expense limits”, records the order.
In the Mixed Budget Committee, the PLDO rapporteur, Gervásio Maia (PSB-PB), was against the correction. The author of the proposal is deputy Luiz Carlos Motta (PL-SP), who, when requesting the change, limited himself to asking for support from his peers, claiming that it “is of interest to all parliamentarians and all political parties”.
According to the section, now vetoed, the amount of the fund in 2026 should correspond to the “amount authorized in the 2016 Budget Law”, corrected according to the rules of Complementary Law No. 200, of August 30, 2023 (which established the framework).
