The withholding of R$1.14 billion in the budget affects 14 departments; look

The ban on discretionary (i.e. non-mandatory) expenditures was actually introduced by the federal government last week. In the annual overview, R$4.95 billion was frozen to comply with spending limits for 2023 – R$3.81 billion had already been contained by the end of September.

The frozen amounts were also released to the Ministries of Health, Women, Racial Equality and Human Rights. In a statement, the government also highlighted that the Education Ministry had not suffered any further cuts – but the previously frozen R$497 million had not been released.

The blockage is caused by an overestimate of initial expenditures above the framework limit of R$1.1 billion. This limit is set at R$1.945 trillion for 2023, which is equivalent to the old spending cap set for this year. From 2024 onwards, the new rule will come into effect, equivalent to 70% of revenue growth above inflation in 2023.

It is important to note that the blockade is not final: it could be reviewed in the next two months – and could even be completely removed – if the expenditures that were initially planned no longer occur, thus opening up space within the borders.
Memorandum from the Ministry of Planning and Budget

See block values: