President Lula sanctioned the 2024 Budget with a provision of R$ 4.9 billion for the electoral fund, a record for municipal elections.
The funding for campaigns had been approved by the National Congress, with the support of parties from different spectrums, such as PT and PL, in addition to the centrão parties.
The amount is twice the distributed amount to parties in the last municipal election in 2020. At that time, the fund was set at R$ 2 billion (about R$ 2.5 billion adjusted for inflation) .
The President also vetoed the allocation of R$ 5.6 billion ($1.1 billion) for parliamentary amendments, used to send resources to the electoral strongholds of deputies and senators.
The Congress had approved a record amount of R$ 53 billion ($ 11 billion). With Lula's decision, they will still have R$ 47.5 billion ($9.5 billion).
Lawmakers admit the possibility of overriding the veto. To avoid defeat, Lula's administration intends to present a plan to restore the R$ 5.6 billion.
"We will negotiate to the maximum," said the government leader in Congress, Senator Randolfe Rodrigues.