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In 2023 and 2024, the Rouanet Law reached historic values, breaking billion-dollar records during the Lula administration. Despite the impressive numbers, the actual fundraising is lower, generating criticism and debates about regional distribution and fiscal impact. What do these amounts really mean for Brazilian culture?
The numbers are impressive and have sparked heated debate. The Rouanet Law, the main tool for encouraging culture in Brazil, has achieved historic milestones in the first two years of the government of President Luiz Inácio Lula da Silva (PT).
Amid the controversies surrounding this financing instrument, the amounts authorized in 2023 and 2024 were the highest ever recorded. However, what do these amounts really mean for culture and public coffers?
The records in detail
- Bridge worth almost R$400 MILLION takes shape and already has a completion date
- State of São Paulo will have a new bridge! Project valued at 27 MILLION has just been approved with the right to a roundabout and adaptation of a double lane
- APPROVED! Important railway will receive investment of 500 MILLION to be expanded and become one of the main railways in Brazil
- Petrobras gets a New Year's resolution in court and the fact alerts companies such as Vale, Americanas and others
According to data released by the newspaper Power360, the amounts authorized via the Rouanet Law reached a record level in 2023, reaching R$17,5 billion — the highest amount in history, considering the correction for inflation.
In 2024, the amount approved for fundraising was also impressive: R$16,9 billion, the second largest in the historical series.
For comparison purposes, throughout the government of Jair Bolsonaro (PL), a notorious critic of the law, the total authorized was R$16 billion, corrected for inflation.
Only in 2024 will the amount exceed what was approved in the four years of his administration.
Here are the amounts authorized annually under the Bolsonaro government:
- 2019: R$5,1 billion;
- 2020: R$4,5 billion;
- 2021: R$2,6 billion;
- 2022: R$3,8 billion.
Before Lula's return to power, the highest record had been registered in 2011, under the Dilma Rousseff (PT) government, with R$5,4 billion in nominal values (or R$11,2 billion corrected for inflation).
Collection does not always mean application
Despite the impressive values, not all of the authorized amount is converted into collection or application.
In 2024, for example, of the R$16,9 billion approved, only R$2,1 billion had actually been raised by the time of disclosure.
The approval of a project under the Rouanet Law allows the raising of funds from individuals and legal entities, who can deduct these amounts from their income taxes.
However, many projects face difficulties in raising the authorized resources.
The Ministry of Culture (MinC) reinforces that the authorized amount only represents the demand presented to the agency, not resources actually released.
According to the MinC, the expectation is to reach a record collection of R$3 billion in 2024.
The most benefited areas
Among the 14.058 projects approved in 2024, the most favored cultural areas were the following:
- Performing arts: R$ 4,9 billion;
- Music: R$ 4,2 billion;
- visual arts: R$ 2,5 billion;
- Cultural heritage: R$ 1,9 billion;
- Museums and memory: R$ 1,9 billion;
- Humanities: R$ 1,4 billion;
- AV: R$ 0,8 billion.
The predominance of resources allocated to performing arts and music reinforces the importance of these sectors for the country's cultural scene.
Regional distribution
Regional inequality is also evident in the distribution of approved projects. According to the Power360, the Southeast region concentrated 53,6% of the projects, followed by the South (23,7%) and the Northeast (12,5%).
The Central-West (5,8%) and the North (4,4%) complete the list. These data reveal an imbalance that reflects both the population concentration and the structural conditions of each region to promote cultural projects.
How the Rouanet Law works
The Rouanet Law allows individuals and legal entities to deduct from their Income Tax the amounts invested in cultural projects. The deduction limits are:
- 6% of the tax due for individuals;
- 4% of the tax due for legal entities.
This incentive model, however, generates criticism due to the government's fiscal abdication, which fails to collect the amounts allocated to the projects.
Official note from MinC
In a statement, the Ministry of Culture clarified that the high values reflect the high demand presented in 2024 and do not represent resources effectively released. The Ministry also highlighted that the data can be consulted in the Support System for Laws of Incentive to Culture (Salic).
And you, what do you think?
Are the record amounts authorized by the Rouanet Law a step forward for culture or do they reflect an imbalance in the use of public resources? Share your opinion in the comments!
Result of the **** democracy installed in the country.
Even the fires disappeared.
And the “cowardly artists’” “mischiefs” disappeared.
There are too many cowards for one country.
These are not public resources. They are merely a tax exemption to promote the cultural sector, in which private companies or individuals seek to sponsor cultural projects in various sectors so that they can also have their income tax deducted. It is important to remember that without this incentive, many projects would not get off the ground due to lack of funds. Let us not forget that every cultural project directly and indirectly moves the economy.