Government raises total budget block to R$ 14.8 billion since January; see detail | Economy

The Ministry of Economy reported this Friday (29) that the total budget blockage this year reached R$ 14.84 billion. The value is R$ 2.1 billion higher than the total reported last week.

Of the BRL 14.84 billion blocked in the 2022 Budget, BRL 8.08 billion affect the so-called rapporteur and commission amendments. The rapporteur’s amendments became known as the “secret budget” due to the lack of transparency.

The remaining amounts were blocked from the budget made available to the ministries to cover investment expenses and the cost of the public machine. This is the so-called “discretionary budget”, that is, compliance with which is not mandatory.

The most affected ministries, in absolute terms, were Health and Education. The folders suffered blocks of R$ 2.77 billion and R$ 1.68 billion in the year, respectively.

Added together, the blocks made in parliamentary amendments and in the discretionary budgets of Health and Education correspond to 84% of the total contingent.

The government did not provide any details on the BRL 8.1 billion blocked in amendments by the commission and rapporteur.. From the material released, it is not possible to know to which ministries these funds referred, where the money would be applied and who were the parliamentarians and commissions responsible for the nominations.

The absence of this detail makes it difficult to identify the real impact on the budget of ministries such as Citizenship and Regional Development – ​​whose budgets are mostly made up of parliamentary amendments.

See, in the table below, the data released this Friday by the government, which indicate the budget blockade accumulated since January:

Budget block on non-compulsory expenses (in BRL)

Budgeting BodiesCurrent AllocationBlocking (% of initial)
Presidency of the Republic 437.8 million 51.5 million (10.5%)
Ministry of Agriculture 2.5 billion 262.9 million (9.6%)
Ministry of Science, Technology and Innovations 6.8 billion 101.9 million (1.5%)
Ministry of Education 20.6 billion 1.7 billion (7.5%)
Ministry of Justice and Public Security 2.7 billion 160.7 million (5.5%)
Ministry of Mines and Energy 1.31 billion 61.6 million (4.5%)
Ministry of Foreign Affairs 2 billion 168.9 million (7.7%)
Ministry of Health 17.4 billion 2.8 billion (13.7%)
Comptroller General of the Union 128.7 million 8.1 million (5.9%)
Ministry of Infrastructure 7.4 billion 256.9 million (3.3%)
Ministry of Communications 1.5 billion 153.7 million (9.5%)
defense Ministry 11.2 billion 347.3 million (3%)
Ministry of Regional Development 3.9 billion405.4 million (9.4%)
Ministry of Tourism612.7 million 46.5 million (7.1%)
Ministry of Citizenship 4.3 billion 181.8 million (4%)
Attorney General’s Office (AGU) 501.6 million 26.4 million (5%)
Ministry of Women, Family and Human Rights 252.4 million 20.5 million (7.5%)
Brazilian central bank 314.1 million 43.6 million (12.2%)
Other Bodies 35.1 billion
Commission and rapporteur amendments (RP8 and RP9) 17.2 billion 8.1 billion (32%)
Total136.2 billion14.8 billion (9.8%)

BRL 2.1 billion additional

The figures released this Friday include an additional block of BRL 2.1 billion compared to the values ​​reported by the Ministry of Economy last week.

According to the government, this block is related to “discretionary expenses considered unavoidable and relevant”. The decision was taken by the Budget Execution Board, but the ministry did not disclose the date of the measure.

Also according to the ministry, this group includes, for example, credits to the Ministry of Economy to pay for services, rural insurance and INSS.

The expectation was that, this Friday, the Ministry of Economy would separately detail the additional blockade of R$ 6.74 billion that had already been announced last week. Aside from changing the total figure, the government has not released the details of the most recent blockade – nor has it explained the reason for that decision.

'It's something, to say the least, very strange', comments Daniel Sousa about blocking another R$ 6.7 billion from the budget

‘It’s something, to say the least, very strange’, comments Daniel Sousa about blocking another R$ 6.7 billion from the budget

The budget blockades announced this year are necessary because the government must comply with the spending cap rule, which limits the growth of Union expenditures to the previous year’s inflation.

With the growth of mandatory expenses (salaries and social security, for example), the Union has to cut “optional” expenses to close the account. Although not mandatory, these expenses are also important for the maintenance of public services – they include electricity and water bills for official buildings and contracts for outsourced services, for example.

The list of mandatory expenses that have recently increased includes cultural incentives generated by the Paulo Gustavo Law – which had been vetoed by Bolsonaro and was restored by Congress – and the minimum wage for community health workers.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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