Brazil's Lula Pre-Election Spending Requires R$33B Budget Adjustment

Brazil's Planning Minister Bruno Moretti stated that the government must adjust the 2027 Annual Budget Bill (PLOA) to accommodate approximately R$33 billion in new expenses and revenue losses from Bolsa Família readjustment, the end of betting revenue, and the new phase of Desenrola. The calculation includes R$5.3 billion lost from ending bets and R$5 billion from Desenrola. This signals fiscal expansion ahead of elections, potentially pressuring Brazil's fiscal credibility and market sentiment.