Gov’t hopes to save $56.57 bi after administrative reform

Brazil’s Economy Minister Paulo Guedes said today (Sep. 9) the administrative reform is like to generate cuts adding up to $56.57 billion in expenditures in ten years. He attended an online event promoted by the Public Right Institute on the administrative reform.

This estimate, the minister said, considers the reform as it was submitted to Congress, still before the changes that may be made by lawmakers. Also considered were the retiring civil servant replacement rate of 60 or 70 percent and the reduction and the reduction of the salary of those entering public service.

Guedes argued that the ceiling of career salaries is high to retain talents considering merit and degrees of responsibility. He said that salaries today do not reflect the performance of civil servants, but is rather “an almost socialist distribution.”

The minister also mentioned that the bill includes an increase in productivity and considers the digitization of public services. “We’ll digitize all of the public service,” he said.

The constitutional amendment bill of the New Public Administration encompasses all three branches—Executive, Legislative, and Judiciary—at federal, state, and municipal levels. It was submitted to Congress on September 3.