Brazil's R$31.3 Billion Budget Cut: Which Ministries Are Most Affected?

Brazil's Government Announces R$31.3 Billion Budget Cut Brazil's government implemented a significant R$31.3 billion reduction in its 2025 budget. This move, announced late Friday, involves R$7 billion in cuts to parliamentary amendments and R$24 billion in reductions across various ministries. The decision aims to align government spending with its fiscal targets. The cuts disproportionately impact certain ministries. The Ministry of Cities faces the most substantial reduction, with almost R$4.3 billion affected. The Ministries of Defense, Health, and Social Development also experience considerable cuts, ranging from R$2.1 billion to R$2.6 billion. These figures were presented in a recent news report by GloboNews. "This is the latest move in a tense week for the economic team," stated a GloboNews reporter, highlighting the pressure on the government to manage its finances effectively. The report explained that R$10.6 billion of the cuts are 'blockages,' meaning they can only be released if expenses are reduced, while R$20.7 billion are 'contingencies' that can be reversed if revenue increases. While the decree detailing the cuts has been published, the specific programs affected remain unclear. Ministries have until June 6th to identify which actions will be subject to these restrictions. The government's stated goal is to achieve a balance between revenue and expenditures by year's end, a challenging task given the current economic climate.