Mato Grosso government plans budget cuts for next mandate

The government of Mato Grosso is planning significant budget cuts across all secretariats and departments for the upcoming 2027–2030 mandate. Re-elected Governor Otaviano Pivetta has tasked former Finance Secretary Rogério Gallo with coordinating an evaluation of public spending to ensure fiscal responsibility and prevent the expansion of the state administration.

The initiative aims to identify opportunities to reduce operational costs while maintaining public service quality. The goal is to secure investments equivalent to at least 15% of the net current revenue over the next four years. This administrative review will include reducing commissioned positions, re-evaluating administrative contracts, and containing superfluous spending to align with revenue ceilings.

The plan faces potential challenges, including tensions with public servants regarding salary adjustments and the pending payment of retroactive inflation adjustments. Additionally, the administration must account for the impacts of the national tax reform, specifically the transition from the ICMS to the IBS, on the state's finances.