Primary central government spending increased sharply in 2020, from 19.5% to 26.1% of GDP. Photo: Geraldo Magela / Senate Agency
A study published Thursday (19) by the Institute for Applied Economic Research (IPEA), a federal public foundation linked to the Ministry of the Economy, shows that Brazil’s economic response to the pandemic was similar to that of other countries in the world.
According to the survey, the country has developed a tax package close to 14% of gross domestic product (GDP), the second largest among emerging countries. The data was published in the study titled “Brazil’s Fiscal Policy and Emergency Response to the Pandemic,” linked to the latest issue of the Social Policy Bulletin (BPS).
“Only the primary expenditure made from the extraordinary credits totaled 520.6 billion R $ or 7% of the GDP in 2020. The resources of the extraordinary credits have also been allocated to the areas of the supplementation of resources for public health emergencies ; income support for families; liquidity and credit support for businesses; and financial assistance to state and municipal governments, ”the survey says.
As a result, according to the study, central government primary expenditure increased sharply in 2020, from 19.5% to 26.1% of GDP, which is the highest level in the historical series.