Brasília – The general federal budget proposal for 2011 allocates 43.5 billion Brazilian reals (US$ 24.7 billion) to the Growth Acceleration Program (PAC, in the Portuguese acronym), the highest figure ever since the program was established. The figure represents an increase of 11.7 billion reals (US$ 6.6 billion) over this year, or 36.6%.
Next year, most of the PAC will be turned to investment in social and urban infrastructure, which should receive 25.2 billion reals (US$ 14.3 billion). Logistics infrastructure works, such as roads, ports and airports, should get 17.9 billion reals (US$ 10.1 billion). The proposed budget sets aside 354 million reals (US$ 201 million) for energy infrastructure, such as hydroelectric plants and transmission lines.
Aside from the PAC’s works, the budget earmarks approximately 5 billion reals (US$ 2.8 billion) for infrastructure works, totalling 48.5 billion reals (US$ 27.5 billion) for the field. According to the Brazilian minister of Planning, Paulo Bernardo, the figure is outstanding and shows the federal government’s commitment to investing.
"In 2003, the budget allocated only 6.3 billion reals (US$ 3.5 billion) to infrastructure. The figure has increased almost eight-fold," he underscored.
Regarding work at ports, however, the proposal cuts the budget down from 1.281 billion reals (US$ 728 million) in 2010 to 912 million reals (US$ 518 million) next year. According to the Federal Budget secretary, Célia Corrêa, the reduction has taken place because the schedule for work at ports forecasts less spending in 2011.
The budget also provides for 444.1 million reals (US$ 252.4 million) to be invested in the FIFA World Cup 2014. Most of the funds, 280 million reals (US$ 159 million), will be spent on preventive public security actions. The proposal also sets aside 1.1 billion reals (US$ 625 million) for the 2016 Olympic and Paralympic Games, of which 500 million reals (US$ 284 million) should go to the Bolsa Olimpíada (Olympic Scholarship) program.
Minister Paulo Bernardo, however, stated that the figures concern only investment from the federal budget itself. "There is a series of actions using funds from the Severance Pay Indemnity Fund (FGTS) and the National Development Bank (BNDES) that are not included in the proposal that was submitted to the Congress," he explained.
*Translated by Gabriel Pomerancblum
