Orthodox centre-right fiscal reformer government that assumed office after Dilma Rousseff's impeachment (Senate vote 31 Aug 2016) and pursued an aggressive liberalising agenda despite Temer's rock-bottom ~7% approval rating. Economic team led by Henrique Meirelles (ex-BCB Governor) framed the programme as restoring fiscal credibility after the 2014-2016 Nova Matriz Econômica collapse: the signature measure was PEC 241/55 — the Teto de Gastos (Constitutional Amendment 95, Dec 2016) freezing real federal primary spending for 20 years. Labour liberalisation followed (Lei 13467/2017, 11 Jul 2017) introducing intermittent contracts, negotiated-over-legislated collective bargaining, and making union dues voluntary; the outsourcing law (Lei 13429, Mar 2017) legalised third-party contracting across core activities. A proposed pension reform (PEC 287) failed to pass after the JBS-recording corruption scandal destroyed Temer's congressional support in mid-2017. Microsoft- and-chainsaw politics: economically orthodox, politically transactional with Centrão, deeply unpopular. Câmara seat share of the Temer coalition peaked around 60% (PMDB 66 + PSDB 54 + DEM 29 + PP 47 + others ~ 300+ of 513), yet public legitimacy collapsed — Temer never ran in 2018 and MDB's presidential candidate Meirelles got 1.2% in the first round. Framework codes policy content, not popularity — the 2016-2018 output is a clear liberal-orthodox swing bracketed by two very different governments (Dilma PT, Bolsonaro PL).
Policy-content fingerprint — how the framework codes this movement on its axes
General government spending as share of GDP, excluding transfers already captured under fiscal.transfer_expansion to avoid double-counting.
decreased · strong
lower spending share
PEC 95 / Teto de Gastos froze federal primary spending in real terms for 20 years — one of the most contractionary constitutional rules internationally.
Short two-and-a-half-year government but policy-dense. The Teto de Gastos is the single biggest constitutional fiscal rule enacted in Brazilian democratic history and the most salient legacy.