Durigan calls fiscal adjustment proposed by Flávio a cheap illusion
The Minister of Finance, Dario Durigan, refuted Senator Flávio Bolsonaro's proposal to cut over R$200 billion from public spending, classifying it as 'a cheap and empty illusion'. Durigan warned that the cut would compromise social policies and public services, as well as cited environmental risks.
The Finance Minister, Dario Durigan, publicly contested Senator Flávio Bolsonaro’s proposal to reduce public spending by more than R$ 200 billion. In an interview with CNN Brazil, Durigan called the fiscal adjustment promised by the parliamentary representative “a cheap and empty illusion that the market is buying.” The statement was given this week and rekindled the debate on fiscal responsibility and social spending.
According to the minister, Flavio did not provide details on how he intends to execute the cut. The absence of a concrete plan, Durigan said, could compromise social policies and essential public services. The criticism comes at a time of strong market pressure for balance in government accounts.
No details of the proposal worry the executive.
Durigan stressed that withdrawing this amount from the Budget would mean cutting virtually all the discretionary expenses of the Executive. These expenses include service maintenance expenses and investments in areas such as health, education, and infrastructure. The minister stressed that the measure would make it impossible for the public machinery to function.
To illustrate the risks, he cited the possibility of interruption of environmental actions. “To take out R$ 200 billion, which is all the discretionary expenditure that the Executive has, is to have deforestation again,” he said. Speech connects fiscal adjustment to a setback in the environmental protection agenda, a sensitive subject for public opinion.
https://www.youtube.com/watch?v=0TbwtmxAaMs
Video: YouTube | Source: www.poder360.com.br
Previous management under criticism
The minister also criticized the government’s fiscal management of Jair Bolsonaro. He said there was no consistent correction of the public accounts in that period. Durigan pointed out that country risk and indebtedness worsened during the previous administration, without presenting specific numbers.
In the minister’s assessment, the increase in dívida pública in recent years is mainly related to the weight of interest, and not to the primary result of government accounts. The statement seeks to shift the focus of the fiscal debate to monetary policy, which keeps the Selic rate at a high level.
Current containment measures
Durigan cited measures of containment of expenses adopted by the current management. Among them, the blocking of R$ 20 billion in the Budget in 2025 and the freezing of R$ 16 billion in 2026. He also mentioned the review of tax benefits as part of the effort to balance the accounts.
These actions, according to the minister, show commitment to fiscal responsibility without making essential services unfeasible. The economic team advocates a gradual adjustment, based on spending review and increased revenue, rather than large-scale linear cuts.
Impact for the citizen
The discussion about the size of the tax adjustment directly affects the life of the population. Deep cuts in discretionary spending can cripple health, education, security and social assistance programs. On the other hand, the absence of adjustment can raise debt and put pressure on inflation.
Experts heard by the report did not comment on the feasibility of Flavio’s proposal. The source did not detail which social policies would be most affected. The debate must continue in Congress, where the senator can submit amendments or supplementary bills.
Next steps
The Ministry of Finance is expected to release in the coming days reports of revenue and expenditure evaluation. The Congresso Nacional resumes discussions on the 2026 Budget after the parliamentary recess. The proposal of Flávio Bolsonaro is expected to be discussed in the thematic committees.
The Boca no Trombone portal will continue to monitor the unfolding of this tax dispute and its impacts for the Paraná and Brazil. Keep up with our daily updates so you don’t miss any details.
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