Category: Public policy

Information related to political affairs that have an impact on Brazil’s economic development.

Caixa paid $ 12 bn in emergency aid

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.

Emergency aid will impact $ 28 bn

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 signs the largest highway concession of $ 2.6 bn

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).

Government revises estimate for GDP in 2020 to fall 4.7%

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.

Public sector accounts have a deficit of $ 4.3 bn in March

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.

Road concessions suffer from record drop in traffic in 18.4%

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%.

Sao Paulo preparing plan for phased economic opening after quarantine

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 govt proposes $7.7 bn transfer to states

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.