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Brazil’s 2006 Budget: US$ 716 Billion. 64% Goes to Serve the Country’s Debt.

Brazil’s Planning Minister, Paulo Bernardo, delivered the government’s proposal for next year’s budget to the president of the Senate, Renan Calheiros (PMDB party from Alagoas state), today.

Brazil’s total budget will be US$ 716 billion (1.7 trillion reais). From this amount US$ 350 billion (R$ 835 billion reais) will go to refinance the debt.  Another US$ 38 billion (90 billion reais) will be used to amortize the same debt. US$ 75 billion are reserved for the payment of interests.


“It is a balanced budget, in which we provide for a primary surplus of 4.25%,” Bernardo affirmed, just before a press conference to fill in details of the bill.


In a preview of some of the items included in the 2006 budget, he stated that priority was given to the social area.


The 2006 budget is 4.25% bigger than the one last year. When compared to the budget proposal approved by the Brazilian Congress, however, this amount represents a reduction of 32.9%.


Next year, the minimum wage will go up to 321 reais (US$ 135). This represents a dent of US$ 1.4 billion (3.4 billion reais) in the Treasury, since the minimum wage is 300 reais (US$ 126) today.


Bernardo highlighted the Family Grant program, which will be allocated around US$ 4 billion (9.5 billion reais). US$ 3.799 billion (9 billion reais) will be destined for family farming.


The health area will be assigned US$ 1.688 billion (4 billion reais) more than in 2005, for a total of US$ 15.611 billion (37 billion reais).


US$ 5.907 billion (14 billion reais) will be made available for infrastructure investments.


ABr

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