Brazil boosts BPC budget by 25.4% for 2027, signaling social spending priority

Brazil's 2027 budget proposal (PLOA) allocates R$ 83.9 billion for the Continuous Cash Benefit (BPC), up 25.4% from the R$ 66.9 billion planned for 2026. The increase signals fiscal expansion in social programs, potentially straining Brazil's fiscal targets and affecting market expectations for interest rates and the real.