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Public Investment in Brazil Reaches US$ 3.9 Billion, a 22% Jump

Public investments in Brazil in the first half of this year totaled 7.341 billion reais (US$ 3.9 billion), an increase of 22% over the same period of last year. Out of that total, 5.417 billion reais (US$ 2.8 billion) consist of commitments to be paid from last year's budget.

According to the secretary of the National Treasury, Arno Augustin, the figures point to an improved allocation of public expenditure, as investment expenditures are on the rise, and those with travels, accounts etc are decreasing. "Whenever investment grows more than expenditure, it is a positive element," he stated.

Another datum that the secretary regarded with enthusiasm is the fact that, despite being high, expenditures are increasing at a lower rate than revenues.

"The expenditure growth rate is evolving in a positive manner, i.e., it is lower than revenues, and it is lower than it was in the first months of last year."

According to the National Treasury report of accounts for the month of June, whereas revenues increased 2% more than recorded between 2005 and 2006, the expenditure growth rate has decreased by 1%.

In the first half of this year, revenues rose by 13.1% in comparison with the first half of 2006. Last year, a growth of 11.1% was recorded over 2005. The growth rate for expenditures was lower, rising from 13.9% between 2005 and 2006, to 12.7% in the first half of the current year.

ABr

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