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With R$74,3 billion, the government launches a mega investment for 2025: public works, modernization and reinforcement of the Bolsa Família program promise to boost the economy and improve the lives of Brazilians!

Written by Deborah Araújo
Published 07/11/2024 às 09:58
Brazilian government announces billion-dollar investment of R$74,3 billion for 2025, covering public works, purchase of new equipment and expansion of Bolsa Família
Photo: DALL-E

The government budget for 2025 foresees a billion-dollar investment focused on infrastructure and social policies essential for Brazil's development.

The Brazilian government recently presented the 2025 Budget bill, which provides important figures on where public money will be spent next year. The document, sent to the National Congress on August 30, foresees a billion-dollar investment of R$74,3 billion in public works and equipment purchases, as part of a larger effort under the PAC (Growth Acceleration Program). These investments are directly linked to key areas such as health and education, in addition to ensuring the functioning of essential social programs, such as Bolsa Família.

The new PAC and the billion-dollar investment

The New Growth Acceleration Program (PAC) is one of the government's main investment fronts, especially when we talk about infrastructure and development. Of the total amount of R$74,3 billion forecast for next year, no less than R$60,9 billion will come directly from the CAP. This amount will be used to finance major works and projects throughout Brazil, from the construction of roads to the expansion of water supply systems.

But the impact of the PAC goes far beyond the budget resources. The program will also receive a billion-dollar investment of R$166,6 billion from federal state-owned companies, which have their own budgets. This money will be allocated to strategic areas, such as energy, telecommunications and transportation, helping to boost the economy and generate jobs in several regions of the country.

Bolsa Família will receive an investment of R$167,2 billion

When it comes to social policy, Bolsa Família is undoubtedly one of the government's most important programs. For 2025, the Budget foresees an investment of R$167,2 billion to guarantee the operation of the program, which will serve 20,9 million families. This means that millions of Brazilians will continue to receive the minimum benefit of R$600, in addition to additional benefits that make the program even more inclusive.

These additional payments include R$150 for each child up to 6 years old and R$50 for pregnant women, nursing mothers and family members between the ages of 7 and 18. This reinforces the government's commitment to combating poverty and ensuring that families are able to provide the minimum necessary for their children and adolescents.

This investment in Bolsa Família not only guarantees a minimum income for these families, but also boosts consumption, especially in more vulnerable regions, where the economic impact of the program is more evident. The money that comes in through the benefit ends up returning to the local economy, boosting small businesses and creating jobs.

Health and Education: Government Priorities

Another area that will receive a large billion-dollar investment is health and education, two essential pillars for the development of any country. The 2025 Budget proposal allocates R$241,61 billion to the Ministry of Health, an amount that is above the constitutional minimum of R$227,84 billion. The Brazilian Constitution determines that the government must invest at least 15% of Net Current Revenue (RCL) in health, and the proposed amount goes beyond this minimum, which is great news for Brazilians who depend on the Unified Health System (SUS).

With this resource, the government intends to improve care in health units, acquire new equipment and ensure that the SUS continues to be a global reference in free and universal care. This is especially important in a country the size of Brazil, where millions of people depend directly on the public health system.

In the field of education, the budget forecast is R$200,49 billion. As in health, this amount is above the constitutional floor, which requires the government to invest at least 18% of Net Tax Revenue (RLI) in education. These resources will be used to maintain and expand essential programs, such as the Basic Education Maintenance and Development Fund (fundeb), guarantee payment for teachers and expand access for children and young people to quality education.

Amount allocated to parliamentary amendments totals R$38,9 billion

Another interesting point in the 2025 Budget proposal is the amount allocated to mandatory parliamentary amendments, which total R$38,9 billion. These amendments are a way to ensure that deputies and senators can allocate resources directly to their electoral bases, meeting specific local demands. This means that many cities and regions can receive improvements in areas such as infrastructure, health and education, directly through these amendments.

Parliamentary amendments are an important instrument within the budget, as they allow regional projects to receive attention and investment, regardless of the government's central planning. The value predicted for 2025 is 3,46% higher than this year's, which shows an increase in the government's willingness to collaborate with the demands presented by parliamentarians.

The fiscal framework and limits budgetary

The discussion on the 2025 budget is also directly linked to the fiscal framework, a rule that sets limits on public spending in relation to GDP. For next year, the value of investments corresponds to 0,6% of GDP, which meets the requirements of the new framework.

This limit was designed to ensure that the country continues to invest in essential areas, such as health and education, without jeopardizing the stability of public finances. In other words, the government needs to find a balance between maintaining investment growth and ensuring that public debt remains under control.

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Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

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