Brazil Government Moves to Block Costly Rural Credit Bill

Brazilian Finance Minister Dario Durigan warned that the government will either veto or challenge in the Supreme Court a proposed rural credit line that could add up to R$140 billion to public debt. The bill, labelled a “pauta‑bomba,” aims to refinance debts of agricultural producers and has been approved in the Senate despite executive opposition. Durigan said the cost is unsustainable and urged revisions in the Chamber of Deputies, noting the possibility of a presidential veto or a legal challenge.

The government is also preparing a coordinated legal response, with ministers Dario Durigan and Jorge Messias planning arguments to present to the Supreme Court to halt other high‑cost legislative proposals that could impose up to R$300 billion in new expenditures, citing concerns over fiscal responsibility and compliance with the Fiscal Responsibility Law.