The Price Of Delay: How Brazil's Amendment Payments Became A Political Weapon

(MENAFN- The Rio Times) Brazil's 2025 budget crisis has exposed deep tensions between President Lula's government and Congress. As of June 25, 2025, 347 lawmakers-303 deputies and 44 senators-had not received any payments for their parliamentary amendments, according to official budget records. These funds, totaling R$62 ($11) billion, are essential for lawmakers to support local projects and maintain their political base. The government increased the amount of reserved funds to R$1.7 billion just before a crucial vote on raising the IOF financial tax.

However, it ultimately paid out only R$409 million. Lawmakers from key centrist and right-wing parties, who are vital for Lula's legislative agenda, received nothing.

Even members of Lula's own party and allied groups were left waiting. Party leaders said the delays damaged their ability to support the government and serve their voters. The delays came at a critical moment. Congress voted by a wide margin-383 against, 98 in favor-to overturn Lula's tax increase. The Senate followed suit. This defeat signaled that Lula lacks a reliable majority in Congress, as confirmed by official vote counts and party statements. The Institutional Relations Secretariat said the delays resulted from a late budget approval and new legal requirements. Brazil's Budget Politics Spark Transparency Concerns The 2025 budget was finalized four months later than usual, and a new law now demands more transparency and stricter deadlines for payments. The Secretariat stated it is following the law and that payments are faster than before. Still, lawmakers see the timing as a form of political pressure. While there is no official confirmation of direct blackmail, the pattern of reserving but not paying amendments before important votes is well documented. This use of amendment payments as political leverage is a longstanding feature of Brazilia politics. Transparency issues persist. Some payments remain difficult to trace, and the Supreme Cour has ruled that secret or unclear payments are unconstitutional. The Court has called for clearer rules, and a public hearing is underway to address the issue. This dispute affects how public money is used and whether local projects move forward. It also reveals how political bargaining can slow down government action and create uncertainty for both citizens and businesses. The episode underscores the ongoing fight for control over public resources and the challenges of ensuring transparency and accountability in Brazil.

MENAFN27062025007421016031ID1109731834