Social spending accounted for most of Brazil's government spending in 2015
In an international comparison, Brazil ranked mid-range in social spending, placed above Asian and other Latin American countries, but below European countries. 
Spending with social purpose has accounted for over two-thirds of Brazil's central government expenditure in 2015, the National Treasury reported Thursday (June 2). According to a Treasure study, social spending has grown from 59.9% of the total expenditure in 2002 to 67.3% last year.
The figures include tax expenditure (tax breaks) and direct spending on cash transfer programs, employee benefits, pensions and civil servant pensions.
Considering only the tax breaks used for social purpose, the increase in spending was even higher, going from 17% of federal expenditure in 2002 to 38.6% last year. Adjusted for inflation, tax breaks have increased from $117 billion (12.6% of the Gross Domestic Product) to $258 billion (5.7% of the GDP).
The report split social spending into seven categories: social assistance; education and culture; rural organization; labor and employment; sanitation and housing; pensions (public and private sectors), and health.
In an international comparison, Brazil ranked mid-range in social spending, placed above Asian and other Latin American countries, but below European countries.
The biggest jumps between 2002 and 2015 were seen in pensions, social assistance, and education and culture. Health spending remained stable in proportion to the GDP.
The most impacting social expenditure item was pensions, both in the private and the public sector. According to the survey, it accounted for more than half of direct social spending between 2002 and 2015. The Treasury said the increase in this type of spending needs to be capped with a pension reform, which is set to be tabled to the National Congress soon.
Although pensions have accounted for the largest growth in social spending in Brazil in proportion to the GDP, social assistance has seen the largest percentage growth. This is due to conditional cash transfer programs including the Bolsa Família (cash benefits for low-income families), and the growing reach of social assistance benefits for the elderly and people with disabilities.
Translated by Mayra Borges
Fonte: Social spending accounted for most of Brazil's government spending in 2015
