Without tax increases, Brazilians can have quality public services

By ETCO

Author: Adriele Marchesini

Source: InfoMoney, 07/12/2007

SÃO PAULO - The population may have access to a higher quality public service,
which would render outsourcing unnecessary and, consequently, expenses
without the need to pay more taxes. THE
conclusion is a research carried out by Fipe (Fundação Instituto de
Economic), at the request of Etco (Brazilian Institute of Competition Ethics).

“In the event of changes in service management, with more control, it is possible
improve the quality of various sectors, such as schools and health ”, explained the
president of Etco, André Montoro. That way, it would not be necessary to seek
private teaching entities and hiring health plans, for example.

Load reduction


The Fipe study showed that government spending is not linked
directly to the quality of service provision. According to the study, in 2005,
for example, 22% of GDP was formed by “low or zero productivity” -
composed of retirees and civil servants. Look:

Percentage composition of public spending -
2005

Item

Weight

Active staff

11,5%

Retirees

10,2%

Interest paid

4,4%

Rolled interest

2,9%

Education

3,2%

Health

2,4%

Investment

1,8%

Grants

0,3%

Montoro does not rule out a possibility, yet, of reducing the load
taxation and improvement in public services. "Of course, there is no magic number,
but with control it is possible ”, he explained.

In numbers


The total collection of federal taxes and contributions reached R $ 54,779
billion in the tenth month of the year, which represents a real increase (based on the
IPCA) of 12% over the total verified in October 2006. In comparison with
September, there was also an increase of 12,66%. According to the Federal Revenue of Brazil,
accumulated in the year, the collection already totals R $ 484,747 billion.


Between 1998 and 2007, the proportion of cargo increased from 27,67% to 36,56%
Brazilian tax system in relation to GDP (Gross Domestic Product), which
represents an increase of almost nine percentage points in the ten-year interval.
The information is contained in the Development Program for managers of the Secretariat
from the farm.


According to the study, signed by José Roberto Afonso, during the period, the
The ratio of the collection of taxes, fees and taxes fell only
between 2002 and 2003, when it went from 33,37% to 32,82%. In other years, the
trend was essentially upward.