Brazil is “world champion” in spending on courts of justice

Brazil is the country that spends the most public resources on courts of justice, out of a list of 53 nations. The data was released this Wednesday (24) by the National Treasury, within the General Government Expenses by Function Bulletin.

In the sum of the Union, states and municipalities, the public sector allocated approximately 1.6% of the Gross Domestic Product (GDP) to the courts in both 2021 (1.61%) and 2022 (1.58%). This item includes expenses with state and regional courts of justice, the Federal Supreme Court (STF) and the Public Ministry, among others.

Brazilian spending in this area corresponds to four times the average spending of the 53 countries on the list (0.4% of GDP).

According to the Treasury, advanced economies allocate an average of 0.3% of GDP to the courts. In emerging economies, average spending on the Judiciary corresponds to 0.5% of GDP.

Apart from Brazil, only Costa Rica and El Salvador spend more than 1% of GDP in this area, according to the survey. All international data cited is from 2021.

Brazilian spending on the Judiciary does not only draw attention in international comparisons. It also stands out in relation to other expenses with the Public Order and Security function.

In 2022, spending on courts exceeded the sum of all spending on police, corrections, fire protection, research and development and others.

That year, spending on Public Order and Security was approximately R$311 billion, equivalent to 3.08% of GDP and 6.71% of all public expenditure.

Just over half of this total went to the courts of Justice, which received R$160 billion (1.58% of GDP and 3.45% of all public expenditure). Meanwhile, police services – civil, federal, federal highway, among others – received R$114 billion (1.13% of GDP and 2.46% of public expenditure).

It is the opposite of what happens in other countries. Both emerging and advanced allocate, on average, more money to police services than to courts of justice. On average across the 53 countries on the list published by the Treasury, the police consume the equivalent of 1% of GDP, more than double the budget allocated to the courts (0.4% of GDP).

Of the total spent by Brazil on courts of justice in 2022, around R$92 billion were disbursed by state governments and R$64 billion by the federal government. Municipalities allocated around R$4 billion to this area, according to the report.

Most of the money goes to employee compensation: there were R$131 billion in 2022, in the sum of salaries and social contributions. According to the Treasury, the remaining expenses were related to the use of goods and services (R$ 21 billion), gross investment (R$ 3 billion), social security and assistance benefits (R$ 3 billion) and others (just under R$ 2 billion ).

Governments spent almost 46% of GDP in 2022

According to the Treasury report, governments from all spheres together spent around R$4.63 trillion in 2022, equivalent to 45.9% of GDP.

The largest expenditure was on Social Protection, which received more than a third of total disbursements. This function – which encompasses social security benefits and income distribution programs, such as Bolsa Família – consumed almost R$1.7 trillion in the year, equivalent to 16.7% of GDP and 36.4% of public expenditure.

The second largest expenditure by governments was on General Public Services, with almost R$1.1 trillion (10.9% of GDP and 23.7% of all expenses). This item includes interest on public debt, general administrative expenses and Legislative and Executive expenses.

Next, disbursements for Education, Health and Public Order and Security appear. The full list is below: