Brazil's Congress 'pautas‑bomba' proposals estimated to cost R$111 bn annually

Brazil’s finance and planning ministries warned that nine high‑impact legislative proposals—dubbed “pautas‑bomba”—running through Congress could together generate an annual fiscal burden of about R$111 billion. The most costly item is a bill to renegotiate rural debt, which the Senate approved despite the executive’s objections and could total up to R$140 billion over 13 years. Other measures include a raise of the Simples Nacional tax cap (R$50 bn revenue loss per year), an expansion of the Municipal Participation Fund (R$10 bn less revenue), tax immunity for religious temples (R$10 bn loss), higher pension costs for health‑community agents (R$3 bn per year), and a new minimum wage for doctors and dentists (R$8.4 bn per year). The Senate’s recent approval of several of these items pushed the combined potential gap above R$200 billion, prompting President Luiz Inácio Lula’s government to seek a counter‑offensive in the Chamber of Deputies, notably through relations with its president, Hugo Motta. Political tension is heightened by allegations that Senate President Davi Alcolumbre received a US$30 million (≈R$155 million) payment from banker Daniel Vorcaro, a claim Alcolumbre denies. The executive is considering vetoes, legal challenges, or STF appeals to curb the fiscal impact.