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Brazil Spends 16% of Its GDP in Social Programs

The Social Direct Budget of the Brazilian federal government in 2004 was US$ 98.98 billion (248.9 billion reais), according to a report issued May 2 by the Ministry of the Finance.

Including loans, subsidies, and tax exemptions, the total social budget was estimated in US$ 111.62 billion (280.7 billion reais) and corresponds to 16% of the Gross Domestic Product (GDP).


67.6% of the total direct expenses were with social security, 12.8% with health, 6.5% with social assistance, and 5.2% with education.


The Ministry’s report contains data from the 2001-2004 period. In the last two years, federal government’s Social Budget increased 31% when compared to 2001/2002.


In 2004, there was an increase of 18% in comparison with 2003. Part of this increase was due to the expansion of money transferring programs, such as the Bolsa Famí­lia (Family Grant).


Expenditures with similar programs doubled: from US$ 954 million (2.4 billion reais) in 2002, to US$ 2.3 billion (5.8 billion reais) in 2004.


The 2001-2004 Federal Government Social Budget report contains detailed information about the destination of resources collected by the federal government and expended in the social area.


These expenses include social security, social assistance, health, education, culture, worker’s protection and employment, housing, sanitation, and agrarian organization.


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