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Increase in collection and efficiency in expenses allow release of R $ 7.51 billion from the budget

Cutting expenses

According to Minister of Planning, Development and Management, Dyogo Oliveira, funding will be divided to meet the needs of federal agencies and pay for works in progress

With increased revenue and efficiency in public spending, the government will release  $ 7.51 billion, previously blocked, in the federal budget this year. Announced this Friday (17), by the Ministry of Planning, Development and Management, the decision allows  the organs of public power to serve the population and improve public services.

"We are going to focus on meeting the needs of the functioning of the organs and the payment of works in progress," said Minister of Planning, Development and Management, Dyogo Oliveira . "The situation of most bodies is really a very tight budget," he added.

To reach this release of resources, there was an increase of R $ 4.97 billion in the net revenue side. Much of the value comes from the auctions of hydroelectric and oil (+ R $ 2.61 billion) and the return of precatórios - idle judicial values that return to the coffers - in the order of R $ 2.71 billion.

In addition to the increase in revenue, the ministry expects a reduction in spending of R $ 2.53 billion, caused by lower expenses with unemployment insurance and salary bonuses. As a result, this year's expenditure contingency decreased from R $ 32.2 billion to around R $ 24.7 billion.

According to Oliveira, the distribution of these resources to government agencies will be detailed next week. The amounts were contingent and will be unblocked by decree next week.

What does that mean?

As part of the effort to remedy the gap in public accounts, the Brazilian government must cut spending and avoid rising spending. However, when part of the federal budget is frozen, some expenses incurred by the agencies are affected. The fiscal target for this year is a deficit of R $ 159 billion.

According to Minister Dyogo Oliveira, the situation of the accounts is still serious, but the release announced today may continue the operation of services in public agencies.

Source: Government of Brazil, with information from the Ministry of Planning