Budget cuts were deepest in Health, Defense and Cities

Following the announcement of R$55 billion in budget cuts, the
Ministry of Planning explained that slightly over R$12 billion will come
out of the budgets of the ministries of Health (R$5.4 billion), Defense
(R$3.3 billion) and Cities (R$3.3 billion). Even so, according to
Planning, the total amounts available after the cuts in the three
ministries will be more than they had in the original budget (“Orçamento
Geral da União de 2012”). The same was true at the Ministry of
Education, where there was a cut of over R$1.9 billion.

It was also announced that the cuts would not affect programs run by
the ministries, only administrative costs (“despesas de custeio”). Thus,
the Accelerated Growth Program (“PAC”), housing for low-income families
(“Minha Casa, Minha Vida”) and poverty reduction (“Brasil sem Miséria”)
will not be affected by the cuts.

On the other hand, the government also announced a revision in
projected revenue, with across-the-board reductions in estimated
budgetary income (“Lei Orçamentária Annual – LOA”) of R$29.5 billion,
tax revenue (“Receita Federal”) of R$14.6 billion and social security
system contributions (“Contribuição para o Regime Geral de Previdência
Social – RGPS”) of R$4.8 billion.

Following the announcement of R$55 billion in budget cuts, the Ministry of Planning explained that slightly over R$12 billion will come out of the budgets of the ministries of Health (R$5.4 billion), Defense (R$3.3 billion) and Cities (R$3.3 billion). Even so, according to Planning, the total amounts available after the cuts in the three ministries will be more than they had in the original budget (“Orçamento Geral da União de 2012”). The same was true at the Ministry of Education, where there was a cut of over R$1.9 billion.

It was also announced that the cuts would not affect programs run by the ministries, only administrative costs (“despesas de custeio”). Thus, the Accelerated Growth Program (“PAC”), housing for low-income families (“Minha Casa, Minha Vida”) and poverty reduction (“Brasil sem Miséria”) will not be affected by the cuts.

On the other hand, the government also announced a revision in projected revenue, with across-the-board reductions in estimated budgetary income (“Lei Orçamentária Annual – LOA”) of R$29.5 billion, tax revenue (“Receita Federal”) of R$14.6 billion and social security system contributions (“Contribuição para o Regime Geral de Previdência Social – RGPS”) of R$4.8 billion.