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Brazil's State-Run Companies Spending Rises 277% with Lula PDF Print E-mail
2010 - March 2010
Written by Stênio Ribeiro   
Tuesday, 16 March 2010 00:53

Public office in Brazil A report from Brazil's Department of State-Run Enterprise Coordination and Governance (Dest), which is housed in the Ministry of Planning, Budget and Management, shows that total spending by Brazil's state-run enterprises in 2009 was slightly more than 71 billion reais (US$ 40 billion).

In 2001 this amount didn't reach 19 billion reais (US$ 10.8). Dest also says that spending is scheduled to reach 94 billion reais (US$ 53.3) in 2010. Between 2002 and 2010 state-run enterprise spending in Brazil rose 277%.

In its breakdown of the spending, the government organ found that between 2002 and 2006 state-run enterprise spending increased between 13.5% and 16.7% annually, but spiked after that when the Luiz Inácio Lula da Silva administration launched the Accelerated Growth Program (PAC).

In 2007, the increase in spending was 21.2%; in 2008 it was 34.4%; and last year slightly more than 33%.

The Dest report also shows a sharp rise in civil servants during the same period. In 2002, there were 370,548 of them; at the end of 2008 that number had risen to 460,866.

It is estimated that in 2009 the number rose another 20,000 with the creation of four new government-run companies: Energy Research Corporation (Empresa de Pesquisa Energética) (EPE); Biotechnology and Blood Bank Products Corporation (Empresa Brasileira de Hemoderivados e Biotecnologia) (Hemobrás), Brazil Communications Corporation (Empresa Brasil de Comunicação) (EBC); and the National Center for Advanced Electronic Technology (Centro Nacional de Tecnologia Eletrônica Avançada) (Ceitec).

The Brazilian government has direct or indirect control in 119 state enterprises that range from petroleum and natural gas, electricity and telecommunications to transportation (subway and urban bus systems, highways and airports) to basic sanitation and water to financial institutions, such as the Banco do Brasil (the country's largest) and the Caixa Econômica Federal (a savings and loan bank). 

ABr
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