Lula Leaving a Legacy of Debts and Unfinished Work to His Successor

    Dilma Rousseff with Lula

    Dilma Rousseff with Lula Brazilian president Luiz Inácio Lula da Silva’s successor next January will receive a budget highly committed to infrastructure and with limited margin for economic decision-making according to reports in the Brazilian national press.

    On January 1st, Lula will hand the presidential sash to the winner of next October’s election, a race which according to the public opinion polls has been cut to two main candidates: governor of São Paulo José Serra, representing the opposition party Brazilian Social Democrats, PSDB, and cabinet chief Dilma Rousseff, the incumbent hopeful in representation of the ruling Workers Party.

    According to Rio’s daily O Globo, there are US$ 19.5 billion in contracts for infrastructure works signed between 2007 and 2010 but which have to be paid by whoever replaces Lula.

    O Globo also estimates that the Lula administration has a backlog of US$ 14 billion in works not leased or under construction.

    This means that the Brazilian government has only paid for 55.2% of the works contracted from 2007 to 2009, and which were included in the infrastructure program promised by Lula for his second mandate.

    The newspaper is optimistic to a point about the evolution of works this electoral year: it estimates 65% of contracts will be finished which is above average.

    “Even in the hypothesis that the government accelerates the execution of works this year, above the average of previous years – which is unlikely – the available revenue in the 2010 budget will not be sufficient to address the expenses of later years, which will be pending,” added O Globo.

    In support of the incumbent candidate Rousseff the Lula administration is expected to announce at the end of March a program of public works that should be executed between 2011 and 2015, as a further stage of the infrastructure plan, but the bills will have to be paid by the next cabinet, be it of whatever color.

    The plan includes works in major infrastructure, sewage and drinking water, transport and energy and pharaonic undertakings such as the Belo Monte hydroelectric dam, the third largest in the world with an initial budget of US$ 10.6 billion.

    In the transport system, more specifically railways, there is a plan to build a super fast train linking Rio to São Paulo. The bill: US$ 18.4 billion

    Mercopress

    Tags:

    • Show Comments (0)

    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

    Exports from Brazil

    Exports to Arabs Booming in Brazil. Sales Grow 40% in 2008

    Brazilian exports to the Arab countries generated almost US$ 9 billion from January to ...

    Brazil: Why Is the Speaker Crying?

    João Paulo, the Speaker of the House, cried because he is irretrievably immersed in ...

    Soy shipped from Port of Santos, Brazil

    Brazil Sees Recovery in Its Main Port: Exports Are Up 3%

    Latin America's largest port, the port of Santos in southeastern Brazil, had a throughput ...

    Wider Use of Air Conditioning in Brazil Pushes Energy Consumption Up

    Electricity consumption in Brazil totaled 28.6 gigawatt-hours in February, a 5.5% increase in comparison ...

    Chile's president Piñera

    New Chile President Blasts Castros and Chavez But Will Soon Visit Brazil

    Chilean president-elect Sebastian Piñera has already announced that Brazil and Argentina will the first ...

    Brazil Accuses EU of Moving Backwards on WTO Agreement

    In a press conference Tuesday, January 24, Brazil’s Minister of Foreign Relations, Celso Amorim, ...

    Embrapa laboratory in Brazil

    After Ghana Brazil Takes its Agricultural Technology to South Korea

    Embrapa, the Brazilian Agricultural Research Corporation, is on the road and crossing borders. Since ...

    Brazil's President Lula

    Image of an Infighting South America Is History, Says Brazil’s Lula

    Brazilian President, Luiz Inácio Lula da Silva, said May Monday, May 26, that the ...

    Foreign Tourists Have Already Brought US$ 2.1 Billion to Brazil This Year

    The study Plano Cores do Brasil, meaning The Colors of Brazil Plan, ordered by ...