The estimated primary deficit of R$ 52 billion in 2026 led the federal government to propose, for 2027, a trigger that limits the growth of expenses with public servants. Under the terms of the mechanism, payments will not be able to increase more than 0.6% above inflation. The measure is part of the Annual Budget Bill (PLOA) for 2027, sent to the National Congress.
The mechanism was instituted by Article 6 of the fiscal framework and is triggered when the government records a primary deficit, that is, a negative result in public accounts without considering interest on the debt. As there was a negative result in 2025 and there is a forecast of a new deficit in 2026, the limitation should apply for fiscal year 2027. The trigger will only cease to be applied when public accounts return to recording a primary surplus.
By the rule, while there is a primary deficit until 2030, personnel expenses will not be able to grow more than 0.6% per year above inflation. The limit covers expenses with active servants, retirees, and pensioners.
