Brazil's Senate approves fiscal package worth up to R$60 billion, with 45 votes in favor and 31 against

• What happenedThe Senate approved the base text of a fiscal adjustment bill, with 45 senators in favor and 31 against. The impact could reach R$56 billion in 2027, and the government puts it at R$50 billion to R$60 billion.
• WhyThe bill (PLP 299/2026) holds the government's fiscal adjustment measures for Lula's fourth term. The rapporteur kept the current rule for transfers to the Federal District fund and the payroll tax relief, changes the government says were needed to secure the vote.
• Market impactThe government says the changes do not alter the overall impact of R$50 billion to R$60 billion. In general, a credible fiscal adjustment can ease worries about public debt, which tends to matter for interest rates and the real.
• What to watchInvestors will watch how the approved text is finalized and implemented, and whether the savings reach the estimated range.