Brazil's cities ministry lacks 58.7bn reais (US$16.9bn) in funding to pay for the 66.6bn reais in commitments planned by the previous federal government administration,

According to cities minister Bruno Araújo (pictured) who presented a financial report to interim president Michel Temer this week, the ministry has 7.92bn reais in cash available, equivalent to only 11.9% of the total, the national treasury said in a release.

The government of suspended president Dilma Rousseff made a number of deals with municipal and state governments for works such as urban mobility, basic water and sanitation, and housing.

However, when the deals were made, the federal government did not have the counterpart funding to support the projects. Today's situation was brought on by a lack of transparency and poor planning, the minister said, adding that the ministry is working on resolving the situation.

The sector most affected by the lack of funding is urban mobility. While the ministry has made some 26.1bn reais in project commitments to help transportation in cities, it only has 370mn reais available.

As for basic water and sanitation, 17.5bn reais in works have been promised with only 440mn reais in ministry coffers, according to the release.

Finally, a total of 16.2bn reais in agreements were made for housing projects, but only 6.92bn reais is available.


Source: BNamericas