The 2027 budget bill provides for a reduction in mandatory expenses to 91.7% of total expenses, compared to 92.4% projected for 2026. In total, this set of mandatory expenses is estimated at R$ 2.563 trillion, corresponding to 17.3% of GDP.
Despite the drop in proportion relative to total spending, mandatory expenses have grown compared to what was projected in the Budget Guidelines Law (LDO), sent by the government in April, when they were projected at R$ 2.486 trillion, or 16.97% of GDP.
Discretionary expenses, which are those the government can freely dispose of, are expected to total R$ 266.8 billion, or 1.80% of GDP. The value is lower than what was projected in the LDO, when it was estimated at R$ 274.7 billion, or 1.88% of GDP.
Planning Minister Bruno Moretti commented that, although there is an improvement in the composition of government expenses, the level is still uncomfortable. According to him, the percentage does not convey the feeling that all the work has been done.
