Brazilian Government Proposes Over R$185 Billion for Social Benefits in 2026 Budget

The Brazilian government has submitted a legislative proposal, PLN 23/26, to the National Congress seeking to open a supplemental credit of R$185.5 billion in the 2026 budget dedicated to funding social benefits programs, including Bolsa Família, pensions, the Benefício de Prestação Continuada (BPC), and Renda Mensal Vitalícia. This large allocation exceeds the constitutional "golden rule," which limits government debt to the amount of its investment and amortization spending, requiring Congressional approval before funds are released.

Currently, R$288 billion worth of budget expenses fall outside this rule, though some have been temporarily authorized by Federal Budget Secretariat decrees. The proposal now awaits review by the Joint Budget Committee before a plenary vote in both the Chamber of Deputies and the Federal Senate, where it must secure at least 257 deputies and 41 senators' support.

In a related measure, the National Congress will also review Medida Provisória (MP) 1.378/2026, which allocates R$547 million to the Ministry of Social Security to reimburse INSS retirees and pensioners wrongly subjected to improper deductions by associative entities. This MP, published on July 21, 2026, is already in effect with a deadline for amendments on August 10 and will proceed under urgent consideration from September 4. Beneficiaries had to register via the Meu INSS app by June 20 to be eligible for reimbursement.

Over R$3.2 billion has been reimbursed to 4.7 million insured individuals as of June. This reimbursement effort was prompted by findings of fraud and irregularities investigated during the Parliamentary Mixed Commission of Inquiry into the INSS. Medidas Provisórias are valid for 60 days and can be extended once for another 60 days; if not voted in time, they become ineffective though Parliament may regulate the resulting legal relations.