With a 'trigger' in the fiscal rule, public servants will not have an adjustment above inflation in 2027, says Finance Minister

The Minister of Finance, Dario Durigan, stated this Monday (15) that the government will not be able to grant adjustments to public servants above inflation in 2027 due to a "trigger" existing in the public accounts rule.
The statement was made during participation in the Warren Politics podcast, led by economist Felipe Salto. cost containment] in a first year of government", said the Minister of Finance, Dario Durigan.
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Understand
The fiscal framework, the rule for public accounts, was approved in 2023, in the first year of President Luiz Inácio Lula da Silva's (PT) term. The rule limits expenditure to 70% of the increase in revenue, or 2.5% per year (above inflation).
➡At the end of 2024, however, the National Congress approved a reinforcement of the rule, defining that, in the case of a primary deficit, the granting, expansion or extension of tax incentives or benefits will be prohibited.
The primary deficit occurs when revenues from taxes and duties fall below government expenditures, without considering expenditure on paying interest on the public debt. The primary surplus occurs when tax revenues exceed expenses - also disregarding interest on the debt.
The rule says that the measure will be adopted in the year following the year in which a deficit is recorded in the government's accounts. And it can only be interrupted when there is a primary surplus. As a fiscal deficit was recorded in 2025, spending will be contained by this trigger in 2027.
➡The negative result in the accounts is also a trigger to activate limits on the increase in government spending on personnel (salaries and social charges, for example, of active, inactive employees and pensioners). 0.6% per year above inflation.
Dario Durigan
Washington Costa/MF
Agreement with civil servants
In 2024, the government reached an agreement with Executive servants covering salary adjustments approved or in discussions within the scope of Specific and Temporary Negotiation Tables, in addition to career restructuring. The agreement covered, at the time, 98.2% of federal government employees.
The Agreements include salary increases for civil servants in 2025 and 2026, with different correction rates. Some categories closed negotiations later, also contemplating staggered adjustments.
That year, the Minister of Management and Innovation, Esther Dweck, stated that the agreements would not only guarantee inflationary replacement for President Lula's entire term, but there would also be a real gain (above the inflation expected for the four years).

Source: G1