Brazilian Federal Government Triples Investments in Two Years

    Brazil’s federal government invested a total of US$ 8.061 billion (18.4 billion reais) last year, 60% more than in 2004, when US$ 4.906 billion (11.2 billion reais) were invested, and nearly triple the US$ 2.847 billion (R$ 6.5 billion) spent on investments in 2003.

    According to the interim minister of Planning, João Bernardo Bingel, the government will have sufficient funds to pay between US$ 6.133 billion (14 billion reais) and US$ 6.571 billion (15 billion reais) of what it plans to invest in 2006. This amount surpasses the US$ 5.038 billion (11.5 billion reais) it paid in 2005.

    Operating expenses and investments in 2005 added up to US$ 36.276 billion (82.8 billion reais), US$ 36.013 billion (82.2 billion reais) of which were committed. The federal government liquidated US$ 32.376 billion (73.9 billion reais) of its obligations, including US$ 2.409 billion (5.5 billion reais) in pending debts from previous years.

    According to the ministry’s technical analysis, the first year of Lula’s Administration was marked by the need to effect a drastic fiscal adjustment in government accounts, in order to regain credibility, control inflation, and reduce the Brazil risk premium.

    2003, therefore, was a year in which the level of investment was low. Investments began to recover in 2004 with the Investments Pilot Project (PPI), a set of strategic projects excluded from the calculation of the primary surplus.

    These projects, basically aimed at infrastructure improvements, accounted for US$ 1.533 billion (3.5 billion reais) in 2005, while direct highway investments amounted to US$ 1.971 billion (4.5 billion reais).

    The State also began to invest once again in railways, which it had not done since the privatization of lines belonging to the Federal Railway Network, and included the North-South Railway in the PPI, providing it with US$ 141 million (324 million reais).

    According to Bingel, it will take more than a year to conclude the construction of major railways, such as the North-South (from São Luí­s, Maranhão, to Anápolis, Goiás) or the Transnortheastern (traversing the interior of Pernambuco, Ceará, and Piauí­). But "we shall certainly complete some stretches," he affirmed.

    Agência Brasil

    Tags:

    • Show Comments (2)

    • Arnold

      more info here
      If you want to take a good deal from this piece of writing
      then you have to apply such methods to your won website.
      https://penzu.com/p/fc2fd97c

    • syko

      hey this really helped me cause im writtin a report about brazil and i needed this for a government paper!!! 😉 😉 so thanks!

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Trucks in Brazilian road

    Brazilian Imports Keep Growing at 51% Rate

    Brazil's balance of trade recorded a surplus (exports minus imports) of US$ 305 million ...

    Iron factory

    In Brazil the Economic Climate Index Is Hot (7.8), LatAm’s Hottest

    Economic Climate Index (ECI) of Latin America, developed between the German Ifo Institute from ...

    Banks Upbeat about Brazil

    Brazil Central Bank’s latest weekly survey of how 100 financial institutions and consultancy firms see ...

    Varig Threatens to Stop Flying If Brazilian Justice Keeps Blocking Money

    VarigLog, the new owner of Brazilian Airline Varig, threatened today, August 1st, to simply ...

    A Brazilian face protest: Não ALCA - No FTAA

    Neither US Nor Brazil Can Set Latin America’s Agenda Anymore

    Latin American and Caribbean nations have long regarded the United States not only as ...

    Paris’s Galeries Lafayette Becomes a Huge Brazilian Market

    Brazil’s Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, launches tonight, in ...

    Show Me One Pro-American Brazilian. Only one!

    The entire mainstream Brazilian media, without exception, is anti-American, anti-Bush, and anti-Israel, including those ...

    Brazil Submits New General to Head UN Forces in Haiti

    The Brazilian government has submitted to the United Nations the name of general José ...

    Flower Power

    Even after having been contacted by the women who found themselves pregnant while taking ...

    Time for Reform

    Immobilism and stalemate are inappropriate terms to describe Brazilian politics today. The political process ...