Changes in expenses in alternative MP to IOF will save R$4.3 billion in 2025, says government

The spending containment measures included in the provisional measure , released this Wednesday 11, to replace the increase in the Tax on Financial Operations (IOF) should generate savings of at least 4.3 billion reais in 2025 and 10.7 billion reais in 2026. The estimate from the Ministry of Finance was released this Thursday 12.

The tightening of the rules for Seguro Defeso — a benefit paid to artisanal fishermen during the closed season, when fishing is prohibited — will have the greatest impact: 1.575 billion reais . According to the ministry, it is now mandatory for the municipal or district government to also approve the fisherman's registration issued by the Ministry of Fisheries and Aquaculture. In addition, expenditure is now limited to the initial budget allocation for each fiscal year.

The budget limitation on social security compensation should save another 1.5 billion reais .

The remaining R$1.2 billion needed to complete the R$4.3 billion expected is limited to sickness benefits. From now on, the deadline for receiving the benefit without the need for a medical examination or assessment will be extended from 180 days to 30 days.

To receive the benefit for a longer period, an in-person or remote medical examination will be required. “The maximum duration for granting the benefit via Atestmed is being gradually reduced from the current 180 days to 60 days, until reaching the new limit of 30 days. The measure aims to balance speed and rigor in granting the aid, ensuring agile access to those who really need it,” said the Treasury, in a note.