Haddad cuts Treasury spending, but keeps business class tickets for himself

Finance Minister Fernando Haddad issued an ordinance that cuts several types of spending by the Finance Ministry until the end of the year. The act was published in the Official Gazette of the Union (DOU) this Monday (7) and restricts purchases, hiring and events until the end of the year, but maintains spending on business class airfares.

The ordinance, says the publication, provides for “measures to rationalize spending and reduce expenses for the 2025 fiscal year within the scope of the Ministry of Finance”, but without detailing the amount that should be saved with the cut.

The decision to suspend the ministry's demands comes almost two weeks after Congress overturned a decree that would increase IOF rates to increase revenue and balance the government's accounts this year. Last Friday (4), Minister Alexandre de Moraes, of the Federal Supreme Court (STF), suspended the effects of both the Legislature and the government , and scheduled a conciliation hearing for the 15th.

According to Haddad's ordinance, the following demands involving the use of budgetary resources are suspended ( see in full ):

• layout suitability;
• holding events;
• acquisition of digital subscriptions to news agencies;
• activation of outsourced jobs;
• activation of paid internship position;
• acquisition of goods and furniture;
• carrying out works, engineering services and physical improvements;
• activation of mobile phone service;
• carrying out training and qualification of employees.

Contracting processes in progress that “incur expenses for the year 2025” are also suspended.

The ordinance, however, does not suspend payments of condominium expenses through the rationalization of the use of physical spaces; security, health and accessibility and which already have credit notes issued.

Executive only for Haddad

The ordinance also maintains permission for executive class airline tickets to continue to be issued, but only for the use of Minister Fernando Haddad himself. For other civil servants, this fare class is suspended.

A business class ticket can cost up to three times more than an economy ticket, according to a survey conducted by travel platform Kayak last year. Reasons for higher fares include more comfortable seats, more space between rows, a different menu and the service provided by the crew.

“The Undersecretary of Tax Affairs and Management and the Undersecretary of Management, Information Technology and Budget, in a joint decision, considering the aspects of relevance and urgency, may authorize the continuation of the demands related to the suspensions provided for in this Ordinance”, the ordinance completes.