Brazil's Budget Freeze Impairs Aviation and Mining Regulation

The Brazilian government’s budget freeze, part of a R$22.1 billion cut, has suspended R$24 million for the National Civil Aviation Agency (ANAC). The pause halts certification processes for new aircraft, reduces inspections by 40 % and suspends pilot and crew certification exams, threatening the operations of airlines such as Gol, Azul and LATAM and delaying the commercial launch of new Embraer aircraft. ANAC president Tiago Faierstein said the agency is working with the government to restore funding.

A parallel cut of R$23.7 billion affects the National Mining Agency (ANM), limiting its ability to inspect dams and review mining projects, including critical‑mineral deposits such as lithium, cobalt and rare earths. The agency warns that dozens of dam and mining pile inspections slated for the year will be cancelled, slowing investments, job creation and royalty collection, and hampering issuance of Kimberley Process certificates for diamond exports.