On Wednesday, October 18, 2023, Eduardo Riedel, the governor of Mato Grosso do Sul, Brazil, announced a decree extending and expanding measures to contain government expenses through the year 2026. This decree, numbered 16.736, maintains restrictions that were originally put in place starting from August 2025, aimed at promoting greater control over expenditures within the Executive Power.

The key feature of this decree is the continuation of a 25% reduction in operational cost contracts, a measure previously outlined in a revoked decree from August 2025 but now reinforced in the new legislation. Additionally, the total commitments of government spending will be capped at the same levels as the previous year's budget. However, it's important to note that this restriction on commitments will not apply to personnel expenses, which indicates a prioritization of employee costs amid the austerity measures.

Furthermore, the decree instructs state agencies to minimize purchases and avoid unnecessary expenses, ensuring that fiscal responsibility remains a priority in government operations. By instituting these measures, the governor aims to strengthen financial discipline and address budgetary constraints facing the state in the upcoming years, signaling a move towards increased fiscal prudence in the management of public funds.