Brazil's Lula administration releases record R$34 billion in parliamentary amendments ahead of 2026 election

The federal government of Brazil under President Luiz Inácio Lula da Silva has paid R$ 33.89 billion in parliamentary amendments from January to early July 2026, the largest amount ever recorded for an election year. The figure exceeds the total disbursed in the entire 2022 electoral cycle and represents roughly a quarter of all discretionary federal spending, with the health sector receiving the biggest share (about R$ 21.8 billion). The record comes just before the start of the electoral “defeso” on 4 July, which temporarily suspends further amendment payments.

In parallel, the Mixed Budget Committee approved eight provisional measures that add R$ 12 billion in extra credits for ministries. About R$ 10 billion is earmarked for a diesel‑subsidy scheme to offset higher fuel prices caused by the Middle‑East war, while the remaining R$ 2 billion will fund disaster‑response and climate‑adaptation projects across the country, including floods in Minas Gerais, a tornado in Paraná, and other extreme events.

State‑level data also show Pernambuco’s legislature releasing R$ 85 million in amendments, with R$ 250 million still available for execution, underscoring the broader fiscal activity surrounding the election period.