Lula's Plan Targets Amendments, Keeps Fiscal Rules

What Does Lula's Government Plan Say About Parliamentary Amendments?

The Workers' Party (PT) submitted Lula's official government plan to the Superior Electoral Court (TSE) on Friday, and it singles out Brazil's parliamentary amendments system as "a serious distortion in the preparation and management of the federal budget." Amendments currently total R$50 billion in the 2026 budget — one-fifth of all discretionary spending.

The plan labels mandatory amendments and the so-called "secret budget" as practices that have "kidnapped the public budget, dispersed resources and reduced allocative efficiency." However, the document stops short of detailing exactly how the containment would work in practice.

Will the Fiscal Framework Be Kept?

Yes. The plan explicitly states the fiscal framework (arcabouço fiscal) will be maintained, following the same strategy as Lula's current term. Fiscal results, the document says, will come from economic growth, control of primary spending, improved public spending efficiency, tax justice and eliminating privileges and distortions.

Although some members of the economic team have reportedly discussed stricter measures — such as cutting the permitted real spending growth ceiling from 2.5% to 1.5% — no such proposal appears in the plan.

What About Labor Reform and Gig Workers?

The plan describes one aspect of the labor reform as a target for "improvement" without specifying which point. It also revives the idea of drawing gig-economy workers — such as app-based delivery riders — into the social security (Previdência Social) system.

What Did Lula Say About Markets and Fiscal Adjustment?

Speaking at an event marking the 30th anniversary of the MTST housing movement in Taboão da Serra (São Paulo state) on Saturday, Lula criticized financial market demands for fiscal adjustment. He questioned whether those setting interest rates or calling for tighter spending caps at Faria Lima — Brazil's financial district — truly understood the daily reality of lower-income Brazilians.