EBAPE professors support budget reform

Institucional
16 Setembro 2013

The low growth of the country, the wave of demonstrations, and the budget proposal sent by the government to the congress have one point in common every year: the need to carry out a budget reform. The warning comes from professors of FGV's Brazilian School of Public and Business Administration (EBAPE) Fernando Rezende and Armando Cunha, authors of the book The Forgotten Reform: Budget, Public Management and Development.In a published article in the newspaper Extra, the economists criticize the budget model which prevails in the country and say that the problem is not the lack of resources, but their management.  Government budgets are the choices that we make to invest the money of society and there are implications of this on the quality of life of current and future generations. This model that predetermines everything is based on the premise that the solution to the quality of public services is more money, when the existing money is not being properly used, explains Armando Cunha, mentioning the formula that determines the allocation of resources.This is, for example, the case of transports. Some sectors were being driven out of the Budget, such as the urban programs. We are watching this movement against transport that does not work, because there is no more money to invest in public transport, neither in the federal government nor in the states, says Fernando Rezende.Still according to the experts, the model reflects the lack of confidence of society in politicians, leaving little margin for the decision of the managers and causing fights for larger budget slices.

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