Supreme Court Minister Flávio Dino Suspends Law Attempting to Revive Brazil's 'Secret Budget'
Supreme Federal Court minister Flávio Dino suspends a law set to revive canceled parliamentary amendments tied to Brazil's controversial 'secret budget', emphasizing fiscal responsibility and constitutional budget processes.
- • Flávio Dino suspended a bill article aiming to revive canceled parliamentary amendments from 2019-2023.
- • The suspension follows a request by the Rede Sustentabilidade party and federal deputies.
- • The bill includes tax hikes on betting houses and fintechs with an expected R$ 22 billion budget impact.
- • Dino highlighted the unconstitutional risks of revalidating canceled payments and ongoing government plans to tackle 'secret budget' issues.
Key details
On December 21, 2025, Supreme Federal Court (STF) minister Flávio Dino issued a judicial injunction suspending a controversial article in a recently approved bill that sought to reinstate canceled parliamentary budget amendments from 2019 to 2023. This action halted legislative attempts to revive what is known as the "orçamento secreto" or "secret budget"—a practice involving non-transparent budget amendments.
The bill in question, which also includes tax increases on betting houses and fintech companies with an estimated fiscal impact of R$ 22 billion for next year, had been approved by both the Chamber of Deputies and the Federal Senate and was awaiting President Lula's sanction, with a deadline of January 12, 2026. The suspended article aimed to authorize the liquidation of unpaid parliamentary amendments, including those previously canceled, until the end of 2026.
Dino's suspension was prompted by a request from the Rede Sustentabilidade party and several federal deputies. He emphasized that authorizing the revalidation of these canceled payments would constitute new spending authorizations without legal budgetary backing, violating fiscal responsibility and Brazil's constitutional budget principles. He also highlighted that some of the amendments targeted by the bill are linked to previously declared unconstitutional types of budget amendments due to their lack of transparency.
Additionally, Dino pointed to an ongoing, STF-approved plan across Brazil's three branches of government aimed at addressing distortions related to the "secret budget," which does not include provisions for reviving canceled amendments. He requested information from the presidency within ten days and indicated that the suspension will remain until the full STF plenary votes on the matter in February 2026.
This intervention underscores rising concerns about fiscal responsibility and transparency in Brazil's budgetary process, reinforcing judicial oversight to prevent the undoing of previous cancellations of controversial parliamentary spending.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
