Brazil slashes more than half its PAC infra budget

Approximately 55% of the investment planned under Brazil's growth acceleration plan, PAC, for this year has been cut, according to a federal government release.

In May, 69.9bn reais (US$20.2bn) in spending was stripped from the budget and in July another 8.47bn reais was cut under the government's phase 2 fiscal adjustment.

PHASE 2 CUTS

The ministries most affected by the phase 2 cut are: cities (reduced by 1.32bn reais to 12.8bn reais); health (by 1.18bn reais to 89.2bn reais); education (by 1bn reais to 38.3bn reais); transport (by 876mn reais to 9.28bn reais); and national integration (by 723mn reais to 2.78bn reais).

Among the other areas seeing cuts were: science, technology and innovation (by 350mn reais to 5.10bn reais); ports (by 130mn reais to 688mn reais), civil aviation (by 18mn reais to 2.66bn reais); and the mining ministry (by 38.6mn reais to 711mn reais).

Meanwhile, the federal government has also slashed its key fiscal target - the so-called primary surplus target - this year. It is now aiming for 0.15% of GDP, or 8.75bn reais, compared with 1.1% of GDP previously.

BNamericas will host its 9th South America Infrastructure & Energy Summit in Bogotá, Colombia, on September 9-10. Download the agenda