Under Bolsonaro, investment in Brazilian cities with more than 50,000 inhabitants grows 94%

Investment in Brazil’s urban centers housing more than 50,000 residents surged under Bolsonaro by 94% in 2022 relative to 2018, according to data from the Center for Metropolitan Studies’ series of technical notes on public policies, cities, and inequalities.

“Even amidst an economic crisis intensified by the COVID-19 pandemic and the repercussions of the conflict between Russia and Ukraine, municipal revenue and spending data portray a favorable environment concerning revenue generation,” the study center’s press release reads.

Cities with a population between 50,000 and 100,000 recorded an even more remarkable investment growth of 134%.

Additionally, there has been a decrease in compulsory expenditures relative to the Net Current Revenue (RCL), primarily staff-related costs and charges.

The study attributes the positive trends to several factors:

• Federal financial aid provided during the pandemic
• A rise in the price of certain commodities, particularly fuel and energy
  Higher inflation rates in 2021
• The report further reveals a real growth in RCL of 24% between 2018 and 2022 among the municipalities examined, rising from R$468.9 billion to R$582.2 (US$116) billion.

One of the primary drivers of this increase was an enhanced collection of the Tax on Services (ISS), which saw a 28% uptick in municipalities with more than 50,000 residents.

The study scrutinizes almost 600 Brazilian municipalities – those exceeding 50,000 inhabitants – using data on RCL, spending by functions, and spending by Expense Nature Groups (GND) from the Siconfi database (Accounting and Fiscal Information System of the Brazilian Public Sector) provided by the Ministry of Finance up to March of this year for 2018 and 2022.

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