Brazil overspends, and poorly so, says World Bank
21 de novembro de 2017
A report released on Tuesday (21) points out issues with Brazilian government finances.
São Paulo – The Brazilian government spends more than it earns, and it fails to allocate resources efficiently, the World Bank concluded in its report A fair adjustment: An analysis of the efficiency and equity of spending public in Brazil was made public this Tuesday (21) in Brasília (DF). Commissioned by the federal government, the study probes the roots of recurrent fiscal problems and identifies what could be done to make spending more efficient.
A press release quoted World Bank director in Brazil Martin Raiser as saying the study’s goal was to show that running a fiscal adjustment while promoting greater social equality and protecting those less fortunate is a doable thing.
“The needed adjustment of public finances poses a big challenge to the country: it must be prepared to ensure a socially equitable adjustment. We have detected that several Brazilian government programs are quite inefficient, and that instead of reducing inequality, they help increase it,” World Bank chief economist for Brazil and the report’s main author Antonio Nucifora explained in the same press release.
He believes Brazil’s social security system is highly unfair and throws government finances out of balance. Nucifora also criticized high civil servant wages, which help breed inequality, and private sector incentive policies costing around 4.5% of GDP while not bringing any apparent benefits to society.
*Translated by Gabriel Pomerancblum