IBOV 171,031.73 ▲ 1.85% IPSA 11,338.38 ▲ 0.89% IPC MEX 65,729.18 ▲ 2.14% MERVAL 2,913,184 ▲ 1.30% COLCAP 2,459.23 ▲ 0.61% BVL PERÚ 58,698.13 ▲ 2.60% USD/BRL5.14▼ 0.05% USD/MXN16.92▲ 0.05% USD/CLP914.28— 0.00% USD/COP3,044▲ 0.21% USD/PEN3.35▼ 0.04% USD/ARS1,499▼ 0.03% USD/UYU40.20▲ 1.52% USD/PYG5,996▲ 1.39% USD/BOB11.43▲ 0.51% USD/DOP58.82▲ 0.19% USD/CRC450.05▲ 1.95% USD/GTQ7.62▲ 2.13% USD/HNL26.81▲ 1.55% USD/NIO36.62— 0.00% USD/VES782.70▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD 157.28 — 0.00% USD/TTD6.71▲ 0.82% EUR/BRL6.00▼ 1.09% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73% IBOV 171,031.73 ▲ 1.85% IPSA 11,338.38 ▲ 0.89% IPC MEX 65,729.18 ▲ 2.14% MERVAL 2,913,184 ▲ 1.30% COLCAP 2,459.23 ▲ 0.61% BVL PERÚ 58,698.13 ▲ 2.60% USD/BRL 5.16 ▲ 0.01% USD/MXN 17.06 ▼ 0.24% USD/CLP 913.98 ▲ 0.04% USD/COP 3,140 ▲ 0.03% USD/PEN 3.36 ▼ 0.66% USD/ARS 1,493 ▲ 0.10% USD/UYU 40.27 ▲ 1.24% USD/PYG 5,939 ▲ 1.68% USD/BOB 11.64 ▼ 0.76% USD/DOP 58.34 ▲ 1.25% USD/CRC 445.92 ▲ 0.89% USD/GTQ 7.62 ▲ 2.21% USD/HNL 26.79 ▲ 1.57% USD/NIO 36.62 ▲ 0.69% USD/VES 762.44 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 157.28 — 0.00% USD/TTD 6.70 ▲ 0.61% EUR/BRL 5.95 ▲ 1.01% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73%
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Brazil Expats & Nomads

Brazil’s Gangs Move 2.4 Times What the State Spends on Security

By · July 9, 2026 · 6 min read

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Public Security

Key Facts

The audit. Brazil’s federal accounts court, the TCU, reported on the National Public Security Plan on 8 July.

The federal share. Union transfers came to 1.19% of state security spending in 2023, 1.17% in 2024 and 1.31% in 2025.

The asymmetry. Organised crime moves about R$348bn ($67.6bn) a year, some 2.4 times the R$142.81bn ($27.7bn) all three tiers of government spent on security in 2024.

The unused lever. Between 2023 and 2025 no state ever had a transfer withheld for ignoring the plan.

The targets. Two of the plan’s thirteen original goals had already been met before it took effect in 2021.

The orders. The TCU gave the Justice Ministry 180 days to revise the National Public Security Plan’s flawed targets and required it to present the 2025 annual evaluation report to the court.

The states pay for Brazil public security, almost entirely. Federal transfers amounted to just over one percent of what state governments spent on security in each of the last three years, a federal audit published this week shows.

Brazil’s Gangs Move 2.4 Times What the State Spends on Security. (Photo Internet reproduction)
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That leaves the states self-funding close to ninety-nine percent of the bill. They also run the uniformed police who patrol the streets and conduct most criminal investigations.

Every foreign account of Brazil public security asks whether the army should be deployed or whether Washington should help. The audit points at a duller question, which is who actually pays for the police. Yet as our reporting has shown, the financial asymmetry runs deeper than federal-state transfers: Rio’s dominant Comando Vermelho has evolved from drug trafficking into territorial control, mimicking paramilitary militias to turn favelas into lucrative prisons, while Brazil consistently records Latin America’s highest cost of crime, with most private security spending going toward combating violence.

What the Brazil public security audit actually found

The report comes from the Tribunal de Contas da União, the federal accounts court that scrutinises how Brasília spends money. Its subject is the National Public Security Plan, a ten-year framework running to 2030.

The audit is blunt about the consequence. The gulf between federal and state money, it says, sharply limits the Union’s ability to persuade states to follow the plan at all.

Then comes the number that reframes everything. Organised crime in Brazil moves roughly three hundred and forty-eight billion reais a year, close to sixty-eight billion dollars.

Set that against what the federal government, the states and the municipalities together spent on security in 2024, about one hundred and forty-three billion reais or some twenty-eight billion dollars. The criminal economy is nearly two and a half times larger than the public one arrayed against it.

A plan whose goals were met before it began

The auditors then examined the plan’s thirteen original targets. Two of them had already been achieved before the plan came into force.

The goal for vehicle theft, set for 2030, had been cleared in 2020. The goal for robbery-homicide, the crime Brazilians call latrocínio, was set at exactly the rate the country had already recorded that year.

A proposed revision was supposed to correct this. The auditors found it repeats the error, pitching a robbery-homicide target for 2030 that national data have shown was already surpassed in 2023.

The revision also expands the target list from thirteen to twenty-two. Eleven of the new twenty-two are written as percentage changes without saying from what starting point, which makes them impossible to measure.

Nor has the plan ever been evaluated. The law requires an annual assessment, and none has been produced since 2021, while four of the nine documents its governance committee was meant to publish were never written and five stopped appearing after 2023.

There is a reason for the silence. The technical commission responsible for producing those assessments had its members formally appointed only in October last year, and it held its first meeting in January.

The plan had by then been running for four years. Nobody, in that time, had been designated to measure whether it worked.

Why this matters more than the sovereignty argument

The states were not consulted when the plan was designed. Its intervention logic was built in workshops attended by forty-two representatives, every one of them from a federal body.

In April this year the court convened the national councils of state security secretaries, military-police commanders and forensic directors. Their verdict on whether the states had been involved was unanimous, and it was no.

The plan’s one enforcement mechanism is the power to withhold federal money from a state that ignores it. Between 2023 and 2025 that power was never once used, and the auditors note it would barely bite anyway, because the money involved is so small.

Read that alongside the week’s other news and the picture sharpens. The Senate has just voted to route a slice of Brazil’s betting tax into a fund for the Federal Police, and Washington has offered to help Brazil confront its criminal gangs.

Both gestures point at the federal forces. The audit says the forces that do the policing are state forces, and Brasília pays for barely one percent of them.

For an investor pricing Brazilian country risk, that is the binding constraint. It is not sovereignty, not doctrine, and not who deploys which soldier, but a federation in which the government that writes the national plan funds almost none of it.

Who pays for Brazil public security?

The states, overwhelmingly. Federal transfers covered just over one percent of state security spending in each year from 2023 to 2025.

How big is Brazil’s criminal economy?

The audit cites annual financial flows of about sixty-eight billion dollars, nearly two and a half times what all three tiers of government spent on security in 2024.

What must the government do now?

The TCU gave the Justice Ministry 180 days to revise the National Public Security Plan’s flawed targets and required it to present the 2025 annual evaluation report to the court.

Frequently Asked Questions

How much do federal transfers contribute to state public security spending in Brazil?

Federal transfers from the Union amounted to just 1.19% of state security spending in 2023, 1.17% in 2024, and 1.31% in 2025. This means states are effectively self-funding close to 99% of their public security costs.

How does organized crime's revenue compare to total government security spending in Brazil?

Organized crime generates approximately R$348 billion ($67.6 billion) per year in Brazil. This is about 2.4 times the R$142.81 billion ($27.7 billion) that all three tiers of government combined spent on security in 2024.

What corrective actions did Brazil's federal accounts court order following the audit?

The TCU gave the Justice Ministry 180 days to revise the National Public Security Plan’s flawed targets and required it to present the 2025 annual evaluation report to the court. The court's audit also found that between 2023 and 2025, no state ever had a transfer withheld for ignoring the plan.

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The Terror Label on Brazil’s Gangs and What It Means for Compliance

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