# Flávio Bolsonaro campaign faces scrutiny over spending cuts > Live situation record from CLSTR: https://clstr.news/situations/flvio-bolsonaro-economic-campaign-proposals > Updated: 2026-10-22T18:32:05.000Z. Sources: 49. Developments: 5. The presidential campaign of Flávio Bolsonaro has entered a period of intense debate regarding its proposed R$ 200-250 billion reduction in public spending, a move referred to as a ‘tesouraço’ (big cut). While campaign officials, including Adolfo Sachsida and Daniella Marques, maintain that social programs such as Bolsa Família, BPC, and pensions are safe from cuts, political opponents like Luiz Inácio Lula da Silva argue that such massive reductions to mandatory spending would inevitably impact these benefits. The campaign has reportedly looked to the fiscal policies of Argentine President Javier Milei as an inspiration. Following a first-round lead in the presidential election, the campaign has addressed conflicting reports regarding the privatization of state-owned enterprises. While Daniella Marques previously suggested that over 20 state companies, including Banco do Brasil, could be privatized, Adolfo Sachsida has explicitly denied plans to privatize Banco do Brasil, Caixa Econômica Federal, or Petrobras. Instead, the campaign is considering restructuring the government by linking Caixa Econômica Federal and Banco do Brasil to a proposed Ministry of Prosperity to oversee social issues, entrepreneurship, and labor. Further details of the ‘tesouraço’ include the preparation of approximately 300 alternatives for cutting public expenses. One controversial proposal involves replacing retiring civil servants in administrative and operational roles with artificial intelligence. While critics suggest these cuts could impact the public health system (SUS), Bolsonaro has pledged to maintain investments by focusing on reducing corruption and bureaucracy. Additionally, Sachsida has advocated for reducing the participation of public banks in housing programs like Minha Casa, Minha Vida. ## Claims - The IMF projects Brazil's public debt will reach 97% of GDP this year. (corroborated by 3 sources) - Flávio Bolsonaro's platform includes reducing the number of ministries and selling government buildings. (corroborated by 3 sources) - Flávio Bolsonaro’s economic team has prepared approximately 300 alternatives for cutting public expenses. (corroborated by 2 sources) - The campaign proposes replacing retiring civil servants with artificial intelligence in administrative and operational roles. (corroborated by 2 sources) - The campaign intends to discuss changes to social security and the minimum wage policy. (corroborated by 2 sources) - A fiscal adjustment of R$ 200 billion could lead to a loss of 2.2 million jobs. (single source) - Adolfo Sachsida proposes reducing the participation of public banks in the Minha Casa, Minha Vida housing program. (single source) - The impact of the proposed fiscal adjustment on GDP is projected to be 1.55% in 2027. (single source) ## Timeline ### 2026-10-22: Flávio Bolsonaro proposes fiscal cuts and banking restructuring Flávio Bolsonaro’s campaign proposes significant fiscal adjustments, including using AI to replace retiring civil servants and restructuring public banks under a new social ministry. 24 sources. https://clstr.news/cluster/daniella-marques-proposes-replacing-public-servants-with-ai ### 2026-10-12: Flávio Bolsonaro campaign faces scrutiny over proposed spending cuts Flávio Bolsonaro's campaign faces scrutiny over proposed R$ 200-250 billion spending cuts, with debates centering on whether the 'tesouraço' will impact social programs and pensions. 15 sources. https://clstr.news/cluster/flvio-bolsonaro-campaign-pledges-to-protect-social-programs-and-state-companies ### 2026-10-07: Flávio Bolsonaro campaign denies plans to privatize state companies Flávio Bolsonaro’s campaign denies plans to privatize major state companies like Petrobras and Banco do Brasil, promising instead to strengthen social programs and focus on fiscal growth. 12 sources. https://clstr.news/cluster/marcelo-kayath-rejects-super-minister-concept-for-finance-ministry ### 2026-09-28: Flávio Bolsonaro proposes privatizing 95% of Brazilian state companies Senator Flávio Bolsonaro has proposed privatizing 95% of Brazil's state-owned enterprises if elected president, reviving a major political debate involving institutions like Banco do Brasil. 6 sources. https://clstr.news/cluster/flvio-bolsonaro-proposes-privatizing-95-of-brazilian-state-companies ### 2026-09-23: Flávio Bolsonaro proposes using Treasury funds to settle consumer debts PL presidential candidate Flávio Bolsonaro proposed the ‘SOS Brasil’ program, which would use Treasury funds and oil royalties to buy and renegotiate individual bank debts at lower interest rates. 2 sources. https://clstr.news/cluster/flvio-bolsonaro-proposes-using-treasury-funds-to-settle-consumer-debts --- Cite as: Flávio Bolsonaro campaign faces scrutiny over spending cuts. CLSTR, https://clstr.news/situations/flvio-bolsonaro-economic-campaign-proposals