Under Temer, investments from state-owned companies and governments plummet.
The unprecedented crisis caused by the coup that ousted the legitimately elected president, Dilma Rousseff, continues to wreak havoc throughout the country; the fiscal crisis is affecting not only federal investments, but also those of federal state-owned companies and state governments; in the first half of the year, state-owned companies made the lowest investment since 2008; the 26 states invested 15,9% less than in the same period last year; federal state-owned companies invested R$ 23,5 billion between January and June, according to the Ministry of Planning. This amount is practically half of what was spent in the same period of 2013; the two largest state-owned companies – Petrobras and Eletrobras – dragged the performance down; together, they account for R$ 9 out of every R$ 10 invested by these companies.
247 - The fiscal crisis is affecting not only federal investments, but also those of federal state-owned companies and state governments. In the first half of the year, state-owned companies, for example, made the lowest investment since 2008. The 26 states invested 15,9% less than in the same period last year. This result is heavily influenced by the state of Rio de Janeiro, where total spending fell from R$ 1,35 billion last year to R$ 179,4 million.
Brazilian state-owned companies invested R$ 23,5 billion between January and June, according to the Ministry of Planning. This amount is practically half of what was spent in the same period of 2013. The two largest state-owned companies – Petrobras and Eletrobras – dragged the performance down. Together, they account for R$ 9 out of every R$ 10 invested by these companies.
Other companies – such as Infraero, the Port Authorities, Telebras, and the Post Office – also slowed down. All told, the 89 state-owned companies not dependent on the National Treasury had executed only 25,8% of the investments planned for 2017 by June. Proportionally, this is the worst execution in ten years.
Linked to the Planning Ministry, the Secretariat for Coordination and Governance of State-Owned Enterprises (Sest) acknowledges that execution is low, but emphasizes that many federal companies are undergoing a process of reviewing their business models and restructuring. This is the case with Petrobras, which is executing an ambitious asset sale plan, and Eletrobras, which is expected to be privatized.
The information is from Reporting by Daniel Rittner and Marta Watanabe in Valor..