Caixa Econômica Federal paid R $ 65.5 billion ($ 12 billion)in emergency aid, in addition to the first and second instalments, said the bank’s president, Pedro Guimarães. In total, 55.9 million people have received some portion of the benefit since the program was created in April, to help people cope with the impacts of the covid-19 crisis.
Demand greater than that predicted by the R$ 600 ($ 110) emergency aid raised the forecast for spending on the benefit to R$ 151.5 billion ($ 28 billion). The estimate, however, considers only the payment up to the third instalment, not taking into account a possible extension of the aid. The amount is 54.2% higher than the initial projection of R$ 98.2 billion ($ 18 billion) announced by the government.
São Paulo announced the signing of a concession contract between the São Paulo State Transport Agency (Artesp) and the Eixo SP concessionaire to operate the PiPa Lot (between Piracicaba and Panorama). With the signing of the contract, Eixo SP takes the largest road network ever tendered in Brazil, with 1,273 kilometres, for a period of 30 years. The winning consortium, under the leadership of Banco Pátria, will make an investment of R$ 14 billion ($ 2.6 billion).
The federal government revised the official estimate for the Gross Domestic Product (GDP) of 2020 and started to forecast a fall of 4.7%. The number was released by the Ministry of Economy on Wednesday (13) through the 2020 budget revenue and expenditure report. The previous forecast, released in March, at the beginning of the crisis generated by the new coronavirus pandemic, was that the economy would grow by 0.02% this year.
The consolidated public sector accounts, which include the federal government, states, municipalities and state-owned companies, registered a primary deficit of $ 4.3 billion in March, according to information released by the Central Bank. The deficit occurs when public sector spending exceeds revenue from taxes and contributions.
The economic crisis triggered by the coronavirus already has an impact on the road concession sector and will require a review of contracts, according to industry experts. The movement of concessioned roads decreased by an average of 18.4% in March. The flow of passenger vehicles registered the biggest drop: 22.7%. Cargo vehicle traffic decreased 4.1%.
Due to the covid-19 pandemic, the collection of federal revenues in Brazil fell by 3.32% in March, totalling $ 109.718 billion ($ 20 billion). The comparison is with the same month of 2019, discounting inflation. This is the lowest value for the month since March 2010, when R$ 105.717 billion ($ 19 billion) was collected.
A phased plan to reopen Sao Paulo’s economy should be announced today (Wednesday 22 April) by the state government, to be implemented as of May 11th. When the quarantine was extended last week, the Covid-19 Crisis Management Committee began to focus on a plan to determine which sectors and which regions of the State of São Paulo could gradually return to operation.
Brazil’s government proposed the direct transfer of 40 billion reais ($7.7 billion) to states and municipalities to help compensate them for the loss of revenue due to the coronavirus crisis, a counter proposal to an 80 billion reais aid package approved by the lower house of Congress last Monday.
Brazil’s Health Minister Luis Henrique Mandetta said that the country’s attempts to purchase medical supplies from China to fight the coronavirus epidemic were failing and the government is turning to Brazilian companies to make ventilators.