In the Union Budget 2023, the Ministry of Cities stands out positively, with 40 times more resources for sanitation
Summary
In the first year of Lula’s government there was an increase in spending for social areas compared to the previous year, but according to INESC it was still below expectations; difficulties were encountered in implementing the new budget and specific resources for children and adolescents decreased, despite the increased contribution.
In the first year of Lula’s government, spending on social areas increased compared to the last year of the previous government. Despite this, the increase in resources is still lower than expected, as demonstrated by the Union budget balance 2023: Brazil in reconstruction?, document prepared by the Institute of Socioeconomic Studies (Inesc), and released this Monday 29th.
In summary, the institute believes that there has been an effort on the part of the new federal management to recompose the country’s social and environmental policies, but, especially in the newly created ministries, difficulties have been encountered in the execution of the budget while continuing to work on recomposing the teams.
- From a negative point of view, the spending on children and adolescents, with lower financial execution than in 2022, despite the larger budget. The report highlights, however, that 96% of the resources allocated to the program for the eradication of child labor in 2023 have been committed, but there has been no financial execution.
- Furthermore, the Ministry of Indian people he spent approximately R$10.29 million just on the creation and maintenance of the department, without having any final budget action under his direct administration.
“The Ministry of Indigenous Peoples was born from scratch, it was a structure that had to be created from scratch. And most of the policies of the ministry were carried out by Funai, because that was the structure that existed until then. So, it is it is still a transition process”, explains Cléo Manhas Earthpolitical advisor of Inesc.
Funai in 2023 had a financial execution of R$ 589.77 million, a value lower than the financial execution of 2022. For Inesc, the decline in spending, although small, warns of political difficulties and structural elements of the organization.
In indigenous healthcare, authorized resources, amounting to approximately R$1.8 billion in 2022, increased by R$400 million in 2023. Financial execution of indigenous healthcare reached 95% of authorized resources.
“It is important to underline that we have a lot to do in terms of protecting, defending and promoting the rights, especially of indigenous groups, women, black men and women, as well as children and adolescents,” says Cléo Manhas.
From a positive point of view, the largest increases in budget implementation concern the Ministry of Cities:
- Resources invested in basic sanitation grew almost 40 times between 2022 and 2023, from R$3.4 million to R$135.58 million in financial execution;
- Also in the “Decent Housing” program there was a jump from just under one million reais in 2022 to almost R$ 10 billion in 2023. In this case, 96% of the authorized resource for 2023 was used;
- The ministry created by the Lula administration has provided, in total, R$ 11.3 billion, which is equivalent to 57% of the authorized resources.
The public budget is not a simple account
Inesc’s political advisor, Cléo Manhas, explains that it is necessary to dissociate the management of the public budget from that which is done at home, with family savings.
«We have long had a widespread culture of being able to compare the public budget with the family budget, saying that we have to see how much we earn and spend less than we earn and that’s it. But we, people who take care of our family budget, cannot issue bonds to sell on the financial market, for example, which can be converted into resources for the budget, we do not have the prerogative to issue currencies or debt securities”, he explains .
Cléo argues that the government uses these prerogatives to increase investment in social sectors, consequently generating more economic activity.
“When the government invests more, there is much greater economic activity, potentially increasing revenue. So, with very austere policies, you end up creating a vicious cycle of reduced growth, reduced revenue growth, and no growth in change in expenditure”, considers the councilor when referring to the tax regimes that guide the federal budget.
Source: Terra
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