Education, Economy and Defense to Have 65 Percent of Funds Released

RIO DE JANEIRO, BRAZIL – With the government’s announcement that it will release R$8.3 billion (US$2.07 billion) from the budget, three ministries have been the most benefited and will be allocated the equivalent of 65 percent of funds: Education, Economy, and Defense.

In total, the three portfolios will receive a total of R$5.39 billion. The Attorney General of the Union (AGU), the Ministry of Women, Family and Human Rights and the Office of the Comptroller General of the Union (CGU) appear at the other end with the lowest releases, totaling R$80.4 million.

Education will receive the largest amount: R$1.99 billion. The funds are expected to be used to replenish part of the cuts made to universities and federal institutions, to buy textbooks and to pay for research grants for CAPES – the Coordination of the Improvement of Higher Education Personnel.

Earlier this month, the Ministry of Education announced cuts to 5,613 master’s, doctoral and post-doctoral fellowships that were planned for the last four months of the year.

The portfolio will also be allocated additional funds of R$1.6 billion from a fine paid by Petrobras to Brazilian authorities following an agreement with the US government to close investigations into the company in that country regarding losses caused to foreign shareholders in corruption cases investigated by Operation Lava Jato.

The agreement was ratified by Federal Supreme Court (STF) Justice Alexandre de Moraes on September 17th, and also included R$1 billion for the preservation of the Amazon.

The funds for the Ministry of Economy, in the amount of R$1.75 billion, will be sent to the Export Guarantee Fund (FGE), international organizations, payment of financial agents, bank fees, for the data systems of the Federal Data Processing Service (SERPRO) and the Social Welfare Technology and Information Company (DATAPREV), in addition to financing part of the 2020 census.

The resources released to the Ministry of Defense, amounting to R$1.650 billion, will be used in the Growth Acceleration Program (PAC) actions and maintenance of activities in the barracks.

The Ministry of Health also benefited from the release and will be granted R$700 million to be invested in the Unified Health System (SUS). The Ministry of Infrastructure will get R$450 million, most of which will be used for road infrastructure; and Mines and Energy, which will receive R$340 million.

The Ministry of Regional Development, which runs the ‘Minha Casa, Minha Vida’ program, has been allocated R$200 million in funds.

Funds were also released to other government bodies, which will be provided with R$83.538 million in additional funds.

In addition, there was the release of tax amendments for a total of R$799.659 million, of which R$533.1 million for individual amendments and R$266.5 million for bench amendments.

Source: Agência Brasil