Economy

Transport budgets boosted but spending will be drop in the ocean for what Brazil needs

After years of declining investment in transportation infrastructure, the Lula government almost tripled budgets for works. But experts say, just to do the basics, Brazil will need to spend five times more.

Transportation budgets boosted but spending will be drop in the ocean
Photo: Joa Souza/Shutterstock

Brazil’s new transportation minister, Renan Filho, said at the end of January that his department’s priority will be to resume the country’s investment capacity for road infrastructure improvements — with budgets for the area having been in decline for seven years now. 

However, instead of excitement, the transportation sector has shrugged at the announcement, arguing that infrastructure is in such bad shape that even urgent restoration works would require more than five times the investment pledged by the new government.

For his first 100 days in office, President Luiz Inácio Lula da Silva is keen on having a series of completed public works that he can present to the country, touring states to cut ribbons. The transport sector is among the main focuses of this strategy, with numerous projects put on hold by previous governments due to a lack of funds, and the urgent need for existing infrastructure to be restored, repaired, and improved.

In an event with all state transportation infrastructure secretaries on January 30, Mr. Filho announced an investment of BRL 1.7 billion (USD 320 million) to speed up and restart infrastructure works and prepare roadways for the ongoing rainy season. By April, the transportation minister expects to deliver 861 kilometers of paved and signposted roads, 72 revitalized bridges, and another 670 kilometers of...

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