Source: O Bancário - Nº 4089, 11/12/2007

The population may have access to higher quality public services, which would make outsourcing unnecessary and, as a result, extra expenses, without the need to create more tax. The conclusion is of a research carried out by the Foundation Institute of Economic Research (Fipe), at the request of the Brazilian Institute of Ethics in Competition (Etco).

If there were better management of services and greater control, it would be possible to improve the quality of various sectors, such as schools and health. Thus, it would not be necessary to look for private teaching entities and hire health plans, for example. The survey showed that government spending is not directly linked to quality service delivery. According to the study, in 2005, for example, 22% of GDP was formed by “low or zero productivity”, a portion composed of retirees and civil servants.

The largest share of public money, according to the survey, goes to payroll, followed by spending on Social Security, interest, education, health, investments and subsidies.