Brazil: Technical Assistance Report-Public Investment Management Assessment

IMF Staff Country Reports, November 29, 2018

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Brazil is the largest country in Latin America with a varied geography and a population of over 200 million spread across 26 diverse states, generating wide-ranging infrastructure needs.
Over the decades, many government investment initiatives have been launched to address these needs; however there remains a significant infrastructure gap in Brazil which continues to hamper growth potential.

Public investment averaged around 2 percent of GDP during the period 1995 to 2015.
Comparative averages during 1995 to 2015:
- 6.4 percent for Emerging Market Economies (EME).
- 5.5 percent for Latin American Countries (LAC).
Public capital stock in 2015 was only 35 percent of GDP.
Comparative public capital stock in 2015:
- 92 for EME.
- 87 for LAC.

Persistent underinvestment over two decades has translated into much lower capital stock in Brazil relative to peers.
The infrastructure gap implied by lower investment and capital stock is identified as a constraint on Brazil’s growth potential.

Subject: Budget planning and preparation, Capital spending, Expenditure, Public financial management (PFM), Public investment and public-private partnerships (PPP), Public investment spending
Keywords: budget authority, Budget planning and preparation, Capital spending, capital stock, CR, cross-government approach, federal government, Global, government decree, government procurement portal, government regulation, investment project, investment strategy, ISCR, private sector investment, public investment, Public investment and public-private partnerships (PPP), Public investment spending, Subnational government

International Monetary Fund. Brazil: Technical Assistance Report-Public Investment Management Assessment. November 29, 2018.