On Thursday, Minister Flávio Dino of the Brazilian Supreme Court issued a ruling that prohibits Congress from approving any new legislation aimed at facilitating the payment of illegal 'additional benefits' that exceed the constitutional spending cap for public servants. The decision highlights the importance of adhering to the constitutional limits set to maintain fiscal responsibility within the government.

This ruling applies not only to the federal level but also to state and municipal governments, emphasizing a comprehensive approach to enforcing the spending cap across all levels of governance in Brazil. It specifically targets the issuance of any new regulations that would allow financial compensation or allowances to be paid that would go beyond what is legally permissible, thereby maintaining fiscal discipline in public service.

By restricting the approval of new laws that contradict the constitutional norm, Dino's decision is a significant step towards ensuring that public expenditure remains within the limits set by the Constitution. This has implications for various layers of government, asserting that no entity, including autonomous constitutional powers, can circumvent the established fiscal rules for public servants, thus reinforcing the importance of legal adherence to budgetary constraints.