Brazil expected to reduce public infra investments

Fiscal restrictions are expected to lead to a reduction in Brazil’s public infrastructure investments next year to 4.7bn reais (US$898mn) from this year’s 6.98bn reais, already the lowest amount since 2019.

“The incoming government's fiscal restrictions are significant, while the need for investment in the sector is also great. This combination of factors points to the continuity of the concessions agenda in the coming years, to attract private investment,” Marcelo Girão, head of project finance at Itaú BBA, the investment arm of banking giant Itaú Unibanco, told BNamericas.

The 2023 figures were presented in a report by the budget bill’s rapporteur, Workers’ Party lawmaker Rui Falcão.  

The lower house will vote on the budget in coming weeks.

Fewer funds for infrastructure create a challenge for the incoming government, whose term starts January 1. While campaigning, Luiz Inácio Lula da Silva promised more public infrastructure investments, for which he wanted to relax the spending cap. But the move would require congressional approval.