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Ministry of Planning

Federal Budget Secretariat Federal Budget Secretariat

2012 ICGFM Winter Conference (EN)

Budget Transparency in Brazil
Welles Matias de Abreu
Federal Budget Secretariat

December 10-12, 2012 – Washington (DC) – USA

Ministry of Planning
Federal Budget Secretariat

Summary

Legislation

Transparency and Communication Initiatives
Brazilian Development and Budgeting Framework Fiscal, Social and Transparency Results Additional Information

Ministry of Planning
Federal Budget Secretariat

Legislation

Ministry of Planning
Federal Budget Secretariat

Fiscal Responsibility Law (2000):
 Context:
Mexico, Russia and Asia Crisis – 1995-1999  Code of Good Practices on Fiscal Transparency – IMF

 Strict Limits Established:
 Civil servants spending limits  Government debts control (federal, states and municipalities)

 Anticipation of budget revenues rules
 Public Sector´s Primary Results (2012: R$ 139.8 bi, 3.10% do GDP)

 Fiscal transparency and participation
 Open Fiscal Budget Reports: over 50 reports  “Transparency Websites” and “public hearings”

Ministry of Planning
Federal Budget Secretariat

 Access to Public Information Law (2011)

The rule is “transparency” and the exception is “secrecy”

Important Questions
 The importance of the Public Budget to Society:  Why does society need to know about the public budget?  How to present public budget in an understandable language?

Ministry of Planning
Federal Budget Secretariat

Transparency and Communication

Initiatives

Ministry of Planning
Federal Budget Secretariat

Federal Budget For Everyone:
Premisses:  Understandable language
 Relevant Informations to Society

Document that synthesizes the Budget Proposal for 2012

 Clarify concepts already established (GDP, inflation, etc)
 An exercise of communication to Society

IBP included this initiative in 2012 research

Ministry of Planning
Federal Budget Secretariat

Public Budget Primer : Sofinha and her team
 2007 – Federal Budget Secretariat accession as one of the managers of Brazilian National Fiscal Education Program. Also, participation in the review and update of the pedagogical Book 4 (Democratic Management applied to Public Resources)  Created the Public Budget Primer: “Sofinha and her team”: “How does the Government Must Expend the Money That is Paid by Society?”  2008 – Began the implementation of the “Sofinha and her team” primer on Public Schools;  2009 – Sofinha Brochure became available on SOF website; and  2010 – “Talk to Sofinha” on the SOF website. “over 60,000 copies distributed in Brazil”

Ministry of Planning
Federal Budget Secretariat

Examples - Blumenau Schools:
From 2009 to 2010, Blumenau worked with 26 schools and 5 Early Childhood Education Centers. Together they distributed more than 2,000 Sofinha Brochures in meetings, seminars and lectures.

Ministry of Planning
Federal Budget Secretariat

SOF Website
 Informations about budgeting process  Technical data and services provided to society  Interactive Contents

 Modern Environment
 Increased Accessibility  Development of the Citizen Page (innovations)
www.orcamentofederal.gov.br

Ministry of Planning
Federal Budget Secretariat

Radio Broadcasts: The Timing Budget
 What is the public budgeting?  How important is the Public Budget?  What is precatory?  How does brazilian government finance its public health?  What are compulsory expenditures?  What is the purpose of the LOA (Annual Budget Bill)?  How does federal budgeting gets to states and municipalities? ... and much more! Over 30 recorded programs

Ministry of Planning
Federal Budget Secretariat

Technical Bugeting Handbook - MTO
 Provides Guidelines to the federal government budgeting  An effort to simplify the budgetary language  Contains instructions for preparing the fiscal and Social Security budgeting  Available on the web
WEBSITE – MP www.planejamento.gov.br BUDGET INFORMATIONS www.orcamentofederal.gov.br/informacoes-orcamentarias

Ministry of Planning
Federal Budget Secretariat

Budgeting Courses to Society
SOF Virtual School
Objective: Transfer knowledge through the Internet. Target Audience: Federal, State and Municipal civil servants and society.  Courses currently offered:
 Basic Course on Public Budgeting (no tutoring)  Public Budgeting Course (with mentoring)  Guidelines Budget law (LDO) for municipalities (no tutoring)  Course on Public Revenue (in preparation)  Federalism (in preparation)

ead.orcamentofederal.gov.br (Moodle)

Ministry of Planning
Federal Budget Secretariat

Basic course on public budgeting modules: What is the Public Budget, Legal Framework, Understanding the Budget Cycle; Civil Society Participation (Total: 8 h)

Ministry of Planning
Federal Budget Secretariat

Others Initiatives
 Regional, National and International Seminars with the purpose of discussing the budgetary process innovations
 III National Seminar on Public Budget - Nov 2012

 Brazilian Budget Open Data
 SIOP – Executive Budget System (including in RDF format)  SIGA Brasil – Legislative Budget System  Portal Transparência – Public Spending Details

 Debate on Internet and Public Hearings about public budget
 http://edemocracia.camara.gov.br/  http://www9.senado.gov.br/portal/page/portal/orcamento_senado

Ministry of Planning
Federal Budget Secretariat

Brazilian Participatory institutions
 Mechanisms of Individual Participation:
 Ombudsmen (call centers or internet) to complaints, evaluating the quality, mediations or express their level of satisfaction
 About 95% of the municipalities and states have ombudsmen

 Collective and Cooperative Processes:  Public conferences
 Public policies councils  Social groups and forums
 Civil servants and society representatives who work in these deliberative meetings. In some cases, regulated by federal law The Presidency of the Republic monitors these processes  For example: CONSOCIAL - National Conference on Transparency and Social Control, CDES - Economic and Social Development Council, and CEFEMEA - Studies and Advice Feminist Center
Font:http://www.ipea.gov.br/portal/index.php?optio n=com_content&view=article&id=10761&Itemid=2

Ministry of Planning
Federal Budget Secretariat

Brazilian Development and Budgeting Framework

Ministry of Planning
Federal Budget Secretariat

Brazilian Development Framework

Fiscal Results

Public Policies

Social Results

Transparency and Responsibility Environment

Ministry of Planning
Federal Budget Secretariat

Brazilian Budgeting Framework
• • • • Government Agencies Planning Ministry Republic Presidency Legislative

Plan
(PPA, LDO and LOA)

P U B L I C
P O L I C E S

Do

• Government Agencies • No Gov. Organizations • • • • Internal Audit External Audit Public Ministry Judiciary

Check

R E S P O N S A B I L I T Y

T R A N S P A R E N C Y

D E V E L O P M E N T

Social Participation

Ministry of Planning
Federal Budget Secretariat

Fiscal, Social and Transparency Results

Ministry of Planning
Federal Budget Secretariat

Public Sector Primary and Nominal Results (% of GDP)
Primary keeping primary surplus

Result = Revenue - Spending

Nominal Result = Primary Result + Financial Interest Result

Ministry of Planning
Federal Budget Secretariat

Public Sector Gross and Net Debts (% of GDP)

Gross Debts

Net Debts

Ministry of Planning
Federal Budget Secretariat

Credibility of Country Risk
Brazil Risk and Exchange Rate
(Until Dec/11)

Annual Average Increase of GDP (%)
(1999 – 2010)
GDP Increase

Risk

Exchange rate Font: www.ibge.gov.br

Ministry of Planning
Federal Budget Secretariat

13% Brazilian reduction of social inequality (Gini index) in 14 years
Reduction of 0.077 (GINI Index) between 1997-2011

Font: www.ibge.gov.br and www.ipea.gov.br

Ministry of Planning
Federal Budget Secretariat

Evolution of Minimum Wages (Increase: GDP + Inflation)
Increase 13.6%
(7.5% GDP + 6.1% Inflation)

Minimum Salary (R$)

Minimum Salary (U$)

Font: http://www.esaf.fazenda.gov.br/esafsite/cursos_presenciais/IX_semana-AOFCP/Florianopolis/Material_Florianopolis/ Oficina%2021%20-%20Receita%20Or%C3%A7ament%C3%A1ria_Florian%C3%B3polis_v1.pdf

Ministry of Planning
Federal Budget Secretariat

Reduction of Unemployment Tax
Average

Considered full employment

Ministry of Planning
Federal Budget Secretariat

International Budget Partnership – IBP – 2010 – 94 countries (Brazil 9º)

Document

% Of the countries that have failed

No available Internal use only available to society

Pre-Budget Statement Executive’s Budget Proposal Enacted Budget Citizens Budget In-Year Reports Mid-Year Review Year-End Report

Citizens Budget Audit Report

Ministry of Planning
Federal Budget Secretariat

Additional Information

Ministry of Planning
Federal Budget Secretariat

 How to get Sofinha Primers?
 E-mail: sofinha@planejamento.gov.br

 How to request participation in courses?
 http://ead.orcamentofederal.gov.br/

 How to get Federal Budget For Everyone magazine?
 E-mail: gasto.eficiente@planejamento.gov.br

 Open Brazilian Budget Data:
 https://www.siop.planejamento.gov.br/siop/  http://www9.senado.gov.br/portal/page/portal/orcamento_senado/SigaBrasil  http://www.portaltransparencia.gov.br/

 Others Links:

Development with Fiscal Responsibility and Transparency

“Valuing Democracy”

Brazil
+ Development + Equality +Participation

Thank You!
Welles Matias de Abreu
Federal Budget Secretariat

“a country for everyone”
“a rich country is a country without misery”

Phone: +55 61 20202220
E-mail: sof@planejamento.gov.br