Flávio Bolsonaro campaign faces scrutiny over proposed spending cuts

The presidential campaign of Flávio Bolsonaro has sparked intense debate regarding a proposed R$ 200-250 billion reduction in public spending, referred to as a ‘tesouraço’ (big cut). While Bolsonaro and his economic team, including economist Daniella Marques and Adolfo Sachsida, deny plans to cut social programs like Bolsa Família, BPC, or pensions, critics and political opponents like Luiz Inácio Lula da Silva argue that such massive cuts to mandatory spending would inevitably impact these benefits.

The campaign has cited the fiscal policies of Argentine President Javier Milei as an inspiration. In Argentina, the end of the pension moratorium is projected to reduce the number of new retirees by 53% by 2026. In Brazil, the debate centers on whether the proposed cuts can be achieved by targeting administrative inefficiencies and privileges without affecting the minimum wage indexation or social safety nets.

Economic advisors suggest the goal is a reduction equivalent to approximately 1.5% of GDP. However, with 92% of the 2026 budget consisting of mandatory expenses, the feasibility of the plan remains a central point of contention in the electoral race.