Brazil's Budget Puzzle: What's Next After Congress Drops the Ball?
Brazil's government is in a bit of a pickle. They need to figure out how to fill a hole in their 2026 budget. This happened because a plan to raise more money didn't get approved in time.
The Plan
The plan was pretty straightforward. It included:
- Changes to how investments are taxed
- Higher taxes for fintech and online betting companies
- Limits on tax breaks for businesses
- Stricter rules for some social benefits
The government thought this would bring in a lot of money, but it didn't happen.
Why?
Because many lawmakers didn't want to raise taxes. They're not fans of the current president's policies. So, the plan expired without a vote. Now, the government is asking Congress to delay the 2026 budget vote again. They need more time to fix things.
The Next Steps
The Finance Minister, Fernando Haddad, said they'd make a decision by Tuesday afternoon. He mentioned they might bring back parts of the plan, like:
- Limits on tax breaks
- Higher taxes for betting companies
The big question is, will Congress go for it this time? Or will Brazil's budget remain a puzzle?
