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A recent announcement by the Minister of Finance, Fernando Haddad, has sparked a lot of discussion. At a PT event held in Brazil, the minister shared the alarming news that the government will not be able to meet the entire budget for 2023. One of the main reasons for this situation is the lack of staff.
“I shouldn’t say this, but we won’t be able to meet the entire budget this year. We are currently holding a tender for renting servers,” said the minister. This statement confirms the existence of a serious problem that many have already noticed: more than 28 billion reais are kept in the ministries.
What caused the non-fulfillment of the 2023 budget?
The “pooling” of resources, as budget delays are known, is the result of several factors. These include bureaucracy, tight budgets, and overdue deadlines. According to the Valor report, R$ 24.163 billion are currently the resources of ministries and other public bodies, according to data collected by the National Treasury at the end of November.
This is not the first time that the issue has been brought up for discussion. In November, President Lula asked his ministers to make an effort to spend more, arguing that idle money is not good for the country.
How does this affect social programs?
Failure to fulfill the budget not only endangers the country’s development in a number of directions, but also directly affects the part of the population that needs it the most. According to Haddad, there should be austerity policies to “include the poor in the budget,” an ideal that has been defended since the campaign of President Luiz Inácio Lula da Silva.
In order to fulfill this promise, the minister points to the need for a sharp reduction in state subsidies to certain sectors of the economy. He calls these inefficient expenditures “frogs,” add-ons that parliamentarians include in bills.
Despite the difficulties, Fernando Haddad is optimistic about the future. He believes in a lower interest rate, expecting the Selic to reach 11.75% at the next Copom meeting. In addition, according to the minister’s estimates, Brazil should end 2023 with the creation of 2 million new formal jobs.
