Government forecasts revenue growth and announces release of R$20.6 billion in 2025 Budget

The Ministries of Finance and Planning announced this Tuesday 22 the release of 20.6 billion reais in the 2025 Budget. The adjustment comes after the Supreme Federal Court confirmed the changes to the Tax on Financial Transactions (IOF).

The details of the ministries that will be covered by the release of funds have not yet been released. The agencies must still inform the government's economic team of the programs to be included within five business days.

To justify the de-contingency, the report increased the net revenue forecast by R$27.1 billion (federal revenues, minus mandatory transfers to states and municipalities). The spending forecast increased by R$5 billion.

According to the report, one of the main sources of additional revenue is the auction of the Union's surplus oil from pre-salt areas. The largest expenditure burden came from the Continuous Benefit Payment (BPC), which is expected to increase by R$2.9 billion by 2025.

According to data released by the government, the total budget block, which was at 31.3 billion reais until May of this year, was reduced to 10.7 billion reais.

A freeze occurs when mandatory expenses increase and non-mandatory spending needs to be controlled. A contingency occurs when revenues are short, meaning revenue is lower than expected.