HomePublicationsInsightsSmallest amount allocated to federal highways in the last 10 years

Smallest amount allocated to federal highways in the last 10 years


In 2022, the National Department of Transport Infrastructure (DNIT), responsible for maintaining federal highways, will have the lowest budget in the last 10 years, with only R$ 6,2 billion planned for investments. This value represents less than 2% of the Brazilian GDP and is below the replacement rate, that is, the amount allocated does not even cover the maintenance of existing highways.

This cut goes against the grain of the quality of Brazilian highways in which, according to the National Transport Confederation (CNT), the situation of 61,8% of the highways is unsatisfactory.

Figure 1: Comparison of the quality of highways in Brazil. Source: CNT

 

Thus, to ease the public budget, the Ministry of Infrastructure bets on the transfer of highways to the private sector. Since 2019, six highways have been up for auction. This year, the government made available more than 15 concession projects. If all assets are indeed auctioned, 30% of all Brazilian paved highways will be under private management.

However, continuing to advance with this brand is a major challenge, since private companies have little or no interest in acquiring highways in regions that do not generate great financial returns. As is the case of the auction of the so-called “Rodovia da Morte” (BR-381 and BR-262) between Minas Gerais and Espírito Santo, which was suspended due to lack of interested parties. Thus, despite the participation of the private sector, other assets require management by the public sector.

The president of the Brazilian Association of Infrastructure and Base Industry (ABDIB), Venilton Tadini, emphasizes the Brazilian disadvantage compared to the competitiveness of the international market. The consequences are an increase in accidents and the cost of logistics, impacting consumers' pockets. This scenario becomes even more aggravating since the main mode of cargo handling in Brazil is by road.

 

References:

Estadão (24/01/2022) – Government cuts investments to the lowest level in history and keeps secret budget untouched

Estadão (02/12/2021) – Research sees deterioration in the quality of highways with cuts in investments

 

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