Dilma reiterates: there is not "a single cent" of federal funding for stadiums.

247 - The Planalto Palace released a statement this Monday, the 24th, clarifying that... report from the UOL portal The statement published this Sunday "is wrong." According to President Dilma Rousseff, "not a single cent of the Union Budget has been allocated to the construction or renovation of the arenas for the World Cup."

The article on the portal states that, "contrary to what Dilma said" in her official statement last Friday, "there is indeed federal money being used for stadium construction for the 2014 World Cup." The text continues: "Adding together tax incentives, loan subsidies, and even participation in arenas, the federal government has already committed approximately R$ 1,1 billion to venues for World Cup matches."

The statement from the Presidential Palace informs that "there are no resources whatsoever from the Union Budget for the construction of any of the arenas." According to the government, "tax exemptions cannot be considered expenses" and "all public investments by the Federal Government for the preparation of the 2014 World Cup are in structural works that will greatly improve the lives of the residents of the cities."

Read below:

Press release: clarifications regarding federal government investments for the World Cup.
Published 24 / 06 / 2013

The article published by Portal UOL on Sunday morning (23), signed by Rodrigo Mattos and Vinicius Konchinski, distorts information, makes incorrect connections and leads the reader to a wrong interpretation of the facts. It is necessary to clarify the following:

Not a single cent from the federal budget is allocated to the construction or renovation of the stadiums for the World Cup.

- There is a loan program available through BNDES (Brazilian Development Bank), with interest rates and the requirement of all bank guarantees, just like any other loan from the bank. The maximum loan amount for each arena is R$ 400 million, established in 2009, a value that remains the same today. BNDES has specific interest rates for various types of works and projects. The financing of the arenas falls under one of these categories.

- There has been no allocation of funds from the Federal Budget in recent years to Terracap (Brasília Real Estate Company). Therefore, the UOL article is incorrect. There are no funds whatsoever from the Federal Budget for the construction of any of the arenas, which includes the Mané Garrincha National Stadium.

Tax exemptions cannot be considered expenses because they leverage job creation and economic and social development, and are allocated to various sectors and projects. The construction of the six arenas completed so far alone has generated 24.500 direct jobs, in addition to thousands of other indirect jobs, mainly in the construction sector.

It is important to emphasize that all public investments by the Federal Government for the preparation of the 2014 World Cup are in structural works that will greatly improve the lives of city residents. These include urban mobility projects, ports, airports, public safety, energy, telecommunications, and tourism infrastructure.

- Hosting mega-events represents an opportunity for the country to accelerate investments in infrastructure and services, improving cities and the quality of life for the Brazilian population. These investments strengthen Brazil's image and that of its products abroad, and boost tourism in the country, generating more jobs and business opportunities for the Brazilian people.

Ministry of Sport, Ministry of Planning, Budget and Management

Source: Planalto Blog, Posted by Marcia Vieira