Brazil Tax Revenues Surge to Record, Giving Lula Spending Leeway

Brazil’s tax collection hit a record high in 2025 according to data published on Thursday, giving President Luiz Inacio Lula da Silva greater room to raise public spending during his reelection bid this year.

Tax revenues totaled 2.89 trillion reais ($544 billion) in 2025, representing a 7.5% increase in inflation-adjusted terms from 2024. In December alone, income reached 292.7 billion reais, the finance ministry reported.

Brazil’s record tax windfall provides some relief to budget constraints at a time when cost-of-living pressures remain high and social spending carries outsized political importance. With elections approaching, the stronger revenues ...