Public spending in Brazil: inefficient and unjust

The Brazilian government overspends – and poorly so, according to a recent report published by the World Bank. The study was commissioned by the federal administration itself and suggests a series of cuts in federal programs that would represent savings of up to 8.3 percent of the country’s GDP.

The report, “A fair adjustment: An analysis of the efficiency and equity of spending public in Brazil,” analyzed eight areas of public spending in Brazil. It graded them based on three criteria: how much of the federal budget they make up; how efficient they are; and how much they contribute to reducing Brazil’s levels of inequality.

The report’s conclusions are not flattering for the country. While Brazil has “consistently” increased public spending – to the point of jeopardizing the country’s solvency – inequality has remained stable over the years. Brazil’s fiscal deficit has reached 8 percent of the GDP, and its public...