25% of the proceeds goes towards paying interest

A survey by the United Nations (UN) Department of Economic and Social Affairs shows that a quarter of Brazil’s tax revenues (collection of taxes and customs fees) were allocated, last year, to the payment of interest expenses.

This is two percentage points more than what was recorded in 2022, when 23% of revenues were used for this.

It is a scenario common to other countries in Latin America and the Caribbean, which are in a fragile fiscal situation. “Increasing spending on interest payments takes resources away from health, education, social protection and other areas of social development”, points out the agency’s report.

Data from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) show that, in 2023, interest payments from countries in the region corresponded to 63% of spending on education and 185% of public investment.

The UN also points out that without an acceleration in growth, the region will not experience a significant reduction in social problems. The agency’s projection for Brazil, the largest economy in Latin America and the Caribbean, is that GDP in 2024 will grow 1.6%, half of what was recorded last year.