FILE PHOTO: General view of the Chamber of Deputies during a session in Brasilia, Brazil, February 1, 2025. REUTERS/Mateus Bonomi/File Photo

BRASILIA (Reuters) -Brazil's Finance Minister Fernando Haddad said on Tuesday the government expects spending control measures to be included in a bill already under discussion in Congress, after a broader fiscal proposal containing those provisions expired.

President Luiz Inacio Lula da Silva's government had indicated the measures, which include tighter controls on certain social benefits and limits on the use of tax credits by companies, would be resubmitted to Congress in a new bill.

Speaking to reporters as he arrived at his ministry, Haddad said the spending control items represent the "uncontroversial part" of the proposal that lapsed without congressional approval.

He added that passing those measures would solve "60% of the problem," referring to additional fiscal actions needed to ensure compliance with the government's target of a 0.25% primary surplus in 2026.

"(This) would give us considerable comfort, leaving only a small residual portion to close next year's budget with ease," he said.

The original proposal that failed to advance in Congress also included tax hikes on online betting firms, fintechs and payment companies, as well as a broad overhaul of investment taxation.

Taken together, the spending cuts and revenue-raising measures were expected to generate 14.8 billion reais in fiscal gains this year and 36.2 billion reais ($6.70 billion) in 2026.

Haddad had previously said the government would also move forward with a separate bill to tax fintechs and online betting firms.

($1 = 5.4039 reais)

(Reporting by Marcela Ayres; Editing by Paul Simao)