Brazil's Gilmar Mendes warns Congress of unconstitutional spending

Supreme Court Justice Gilmar Mendes used his X account on 10 June 2026 to caution Brazil’s Congress that any legislative proposal that creates new expenses or grants tax benefits must be accompanied by a prior fiscal‑impact study, otherwise it risks being declared unconstitutional. He cited article 113 of the ADCT and said, “Toda proposição legislativa que crie ou altere despesa obrigatória ou renúncia de receita deve vir acompanhada da estimativa do seu impacto orçamentário e financeiro.”

Mendes warned that “pautas‑bomba” – bills lacking cost estimates – could force the STF to invalidate the measures. He highlighted several pending proposals, including the renegotiation of rural producers’ debts, a special‑pension scheme for health agents, a new salary floor for doctors and an expansion of transfers to municipalities, with projected fiscal impacts ranging from R$10 billion to more than R$140 billion (some estimates reach R$276 billion). The minister reiterated the need for “responsabilidade fiscal e fidelidade à Constituição,” urging lawmakers to demonstrate the cost and funding source before approval.