How Fiscal Issues Could Impact Your Wallet in 2026

What's at stake in fiscal matters

According to Valor Econômico, Brazil's public debt is growing rapidly, reaching 82.9% of GDP during President Luiz Inácio Lula da Silva's third term. This means the next government will face significant fiscal challenges. The question is: how could this affect your wallet?

Public debt reflects how the government is managing its finances. Without effective control, this can lead to tax increases, cuts in essential services, and even higher interest rates. After all, to pay off the debt, the government may need to collect more, which can directly impact your income and expenses.

Why this matters to you

In daily life, the country’s fiscal situation directly influences your personal budget. If taxes increase to help cover the debt, you may feel that in your wallet. For example, if a tax on products you consume rises from 10% to 15%, that means on a R$ 100 purchase, you will pay R$ 5 more. This may seem small, but over repeated purchases, the impact adds up.

Additionally, higher interest rates can make loans and financing more expensive. If you are thinking of buying a car or a house, the increase in interest rates can raise your payments, making them less affordable. In the current scenario, where the cost of living is already high, this is an even greater concern for Brazilian families.

What you can do

With economic uncertainty ahead, it's essential that you take steps to protect your finances. Here are some actions you might consider:

• Review your budget: Use the 50/30/20 method to divide your income. This means that 50% should go to needs, 30% to wants, and 20% to savings. This will help ensure you have a cushion in case of emergencies.
• Build an emergency fund: With rising public debt, instability may affect your income. Aim to save at least three to six months' worth of expenses in a separate account.
• Financial education: Understanding how taxes and interest work will help you make more informed decisions about your finances.
• Evaluate your debts: If you have debts on credit cards or loans, consider paying them off as soon as possible. High interest can become an even heavier burden if inflation and interest rates rise.

Connection with ADXIS

The fiscal situation in Brazil is complex and may bring uncertainties, but with good financial organization, you can prepare for whatever comes. ADXIS can help you keep your budget in check, plan your expenses, and make better financial choices. Don't wait for a change in government to start taking care of your financial future!