Government's operating expenses rose 2% but remain below inflation in 2015

Federal government's administrative operating expenses totaled $5.68 billion from January to November, compared to the $5.55 billion for the same period last year. Despite the nominal value having increased 2.2%, the amount represents a real decrease of 8.5% when considering inflation by the Broad National Consumer Price Index (IPCA).

Data were released by the Planning Ministry, in the new edition of the Administrative Operating Expenses Bulletin. From seven groups of the expenses analyzed, only expenses at electricity rose above inflation, going from $258.3 million to $387.5 million, with real increase of 32%. According to the ministry, the reason was the adjustment of electricity tariffs.

The other groups of expenses declined below inflation. According to the Planning Ministry, the largest real decrease was registered in the payment of daily rates and airline tickets (36.1%), followed by costs of material consumption (12.2%) and rent, maintenance and conservation of real estate goods (11.9%). Spending on communication services, provision of support services, and sewers and sanitation services have also dropped.

The provision of support services were responsible for most of the year-to-date operating expenses until November, totaling $2.27 billion (40% of expenses). In second place, spending on consumables reached $1.03 billion (18%), and in third place, communication services mount to $646 million (12%).

Adjusting the expenses from previous years for inflation, spending in 2015 reached the lowest level since 2011. According to the Planning Ministry, expenses on airline tickets, daily rates, employee leasing, and communication services are lower than the real level since 2010.

However, the small increase in the total of administrative operating expenses is not related to the maintenance of public agencies, but to three groups of expenses: the Constitutional Fund of the Federal District (that changed from the column of staff expense to operating expenses), transfers from the Treasury to grant exemption of the payroll in 2015, and the government's delay to pay the Guarantee Fund for Length of Service (FGTS).

Translated by Amarílis Anchieta