The Luiz Inácio Lula da Silva government forecasts that spending on social security benefits should reach R$ 1.169 trillion in 2027, according to the annual budget bill released by the Ministry of Planning. The amount represents an increase of R$ 87.5 billion compared to the forecast for the current year, according to the latest bimonthly report published in July.
Spending on INSS is pointed out as the main primary expense in the Brazilian budget. The forecast indicates that these expenses will continue to exert pressure on public accounts in the coming years.
Among the factors contributing to this growth are the aging of the Brazilian population and the indexing of benefits to the minimum wage. According to the current rule, the minimum wage has real gains, which directly impacts the costs of social security.
