Brazil’s parliamentary amendments have swollen to R$44.8 billion in 2024, equal to 21% of federal discretionary spending, a scale that is reshaping how the government allocates money and deepening concern over fiscal control in Latin America’s largest economy.
Brazil amendments reach R$44.8 billion in 2024
A new study by researchers from Fundação Getulio Vargas and the University of São Paulo says about R$1 in every R$5 the federal government can spend now goes to lawmakers’ amendments, an increase that has accelerated since the 2015 constitutional change that made individual amendments mandatory. The researchers argue the rise has curtailed executive flexibility and weakened the state’s ability to direct resources toward long-term priorities.
The political economy impact is significant. Discretionary spending is the part of the budget Brasília uses to fund investments, public services and policy priorities outside of automatic obligations such as pensions and debt service. As amendments consume a larger share of that pool, the government has less room to maneuver during periods of slower growth, higher borrowing costs and mounting pressure to meet fiscal targets.
The study, presented at FGV/EBAPE in Rio de Janeiro, shows spending on amendments jumped from R$3.9 billion in 2015 to R$44.8 billion in 2024, adjusted for inflation, an increase of more than 11 times in nine years. The authors say Brazil’s model is now unusual by international standards because it embeds a large share of public spending in earmarked legislative transfers rather than in centrally planned policy execution.
That matters for investors because tighter budget room raises the risk that Brazil leans more heavily on taxes, spending cuts or borrowing to preserve fiscal credibility. It also feeds the broader debate over debt dynamics, interest rates and the country’s ability to sustain growth without another round of political friction over spending.
The report comes as the Supreme Court has already intervened over transparency rules and as prosecutors investigate alleged irregularities tied to nearly R$700 million in amendments. That legal pressure adds another layer of uncertainty to an issue that sits at the center of Brazil’s tug-of-war between Congress and the executive branch.
The researchers propose reforms ranging from replacing the 1964 budget law to tying amendments more closely to long-term policy goals and aligning the multi-year plan with the annual budget. They also call for changes to tax policy and intergovernmental transfers, but say the bigger question is whether any political coalition can sustain such changes ahead of the 2026 election cycle.
| Entity | Gains | Losses |
|---|---|---|
| Congress | ▲Budget control | ▼Fiscal scrutiny |
| Federal ministries | ▲Less flexibility | ▼More earmarking |
| States and municipalities | ▲Direct transfers | ▼Policy coordination |
| Investors in Brazil assets | ▲Reform catalyst | ▼Fiscal uncertainty |
