Budget allocation for rural areas: dynamics of Brazilian federal expenditures from 2000 to 2017

Abstract

The 95th Constitutional Amendment of Brazil, which limits federal public spending for twenty years starting in 2016, increases the competition for the use of these values among its claimants. Through the National Budget Panel, this study describes the dynamics of federal expenditures since 2000, especially on resources directed to rural areas. For this purpose, federal spending is separated into function and expense groups, budget units, programs, and specific actions. The analysis shows that expenditures directed to rural areas, considered already low, have lost space in the budget distribution, except for expenses with rural Social Security beneficiaries. This view reinforces the need to reverse the situation to be consistent with the socioeconomic relevance of the Brazilian rural area.