Brazil 2027 budget draft shows Judiciary personnel spending exceeds Executive estimates

The 2027 budget draft reveals significant discrepancies regarding personnel expenses, with the Judiciary leading the corrections. According to technical notes from the Chamber of Deputies and the Federal Senate, spending for the Judiciary, the Union Public Prosecutor's Office, and the Public Defender's Office exceeded the Executive branch's original calculations by approximately R$ 2 billion.

To address deficits from 2025 and 2026 and adhere to the current fiscal framework, the Executive branch has implemented strict growth limits on these expenses. While different interpretations of growth rules led to varying limits for different agencies, the total global amount allocated for personnel in the project is R$ 464 billion. This figure remains R$ 7 billion below the total permitted limit.

When including R$ 11.15 billion for judicial sentences and R$ 34.24 billion for employer contributions to the Public Servant Social Security Plan, the total cost reaches R$ 509.45 billion. Total personnel and social charge expenses represent 27.39% of net current revenue, which remains within the global and individual limits established by the Fiscal Responsibility Law (LRF).