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EDITION Nº 004 · BRAZILSATURDAY, OCTOBER 31, 2026 · 13:12
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GOVERNMENT & PUBLIC FINANCES31 OCT 2026 · 11:00

Novo calls for Lula's ticket to be revoked and accuses spending without tax compensation

According to Revista Oeste, the party's action questions extraordinary credits, resignations without compensation and propaganda at the Sapucaí Carnival.

BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 3 MIN

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The Novo Party filed a lawsuit asking for the revocation of President Lula's ticket, elected for a fourth term, and accuses the government of increasing spending and resignations without defining how these expenses will be compensated. According to Revista Oeste, the party maintains that the problem goes beyond an isolated measure and appears in a set of decisions taken before the vote.

Among the measures listed by the report are the readjustment of Bolsa Família, which the text considers to be done without planning, the expansion of fuel subsidies and the ban on betting. According to the publication, all of these initiatives appear in the list of actions adopted before the election.

In the party's assessment, the government successively resorted to extraordinary credits to cover expenses that, according to the accusation, were predictable. The same criticism extends to the creation or expansion of expenses and revenue waivers without defined compensation, a point that, for the party, compromises the discipline of public accounts.

The report also records the accusation that the Sapucaí Carnival was used for propaganda by the federal government, months before the election. The text does not provide the exact date of the episode, which limits the accuracy of the report.

The title of the publication indicates that the target would be Alcolumbre, but the available excerpt does not explain the reason for this association. Without this information, it is not possible to say what role he would have in the case, and the accusation must be read as an allegation by an interested party, without a trial yet.

What is at stake is the credibility of the fiscal framework of a government that has just won the election. The action still depends on analysis, and its outcome has not been defined. Meanwhile, the debate about who pays the bill for programs and subsidies remains open.

What changes for the investor

For those who follow the stock market, interest rates and the dollar, the central point is the predictability of public accounts. Expenses without defined compensation and extraordinary credits used on a recurring basis tend to increase uncertainty about the debt's trajectory and, if this situation is confirmed, could put pressure on interest rates and exchange rates. The impeachment action adds a component of political and legal risk to the scenario. None of this indicates a direction for prices: the effect will depend on the facts that are confirmed, the government's responses and the decisions of Congress and the Courts.

Automatically translated from Portuguese.

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