Investment planned for transport triples, but disbursement of funds is uncertain

The 2023 Budget foresees investments of BRL 18.7 billion in transport infrastructure, practically triple the amount allocated last year, according to a survey by the CNT (Confederação Nacional do Transporte).

The amount, however, is far from what is needed. The CNT estimates the immediate need of BRL 95 billion for maintenance, restoration and reconstruction of the troubled roads across the country alone.

Initially, the budget proposal provided for a cut of almost 10% in the area, but the resources were increased after the approval of the PEC (proposed amendment to the Constitution) that increased the space in the spending ceiling this year.

Almost 90% of the values ​​are destined to the Dnit (National Department of Transport Infrastructure), an agency of the Ministry of Transport. Most of the money is expected to go towards maintaining federal roads.

The 2023 Budget foresees BRL 26.3 billion for the Transport budgetary function, including investments and other expenses, with 60% of the amount earmarked for the road modality.

The CNT states that the increase in the volume of resources is positive, but it is necessary to ensure that the money is effectively spent. As investments are non-mandatory expenses, says the entity, they are subject to cuts and contingencies, in case any budget adjustment is necessary throughout the year.

Spending on transport infrastructure last year is estimated at R$ 6.6 billion, the lowest amount ever recorded, considering the last 22 years. The number for 2023 represents the highest amount authorized in eight years, considering inflation-adjusted values.

Due to the low budgets of recent years, says the CNT, the national capital stock has depreciated. That is, the money was not even enough to avoid the degradation of existing assets.

The entity defends the need for public investment in the sector. Despite the advances in transport concessions in recent decades, much of the national network depends on Budget resources, as not all assets have potential return for the private sector. This is what happens, for example, with many roads in the interior of the North and Northeast.

The executive director of the confederation, Bruno Batista, states that it is necessary to maintain a continuous level of high investments for many years to recover the national road park. According to him, the delay in making the necessary repairs increasingly increases the cost of this recovery, as small problems are getting worse.

“The very low volume of resources for a prolonged period caused a serious problem on Brazilian highways, which deteriorated. It is necessary to maintain this level of investment for the next 10, 15 years. First to remedy the most critical problems, and then to stabilize the level of quality and start a recovery”, says Batista.

According to the 2022 CNT Survey of Highways, 66% of federal and state roads in the country are classified as “regular, bad or terrible” in matters such as paving and signaling. The number represents a worsening in relation to the 62% of 2021. About 90% of them are under the management of the federal government or state administrations.

75% of the road network under public management and 31% of the roads granted to the private sector have some type of problem, according to a survey carried out on 110,000 kilometers of federal and state roads throughout the country. The survey points out that the quality of the highways returned to the level of 2009.

“Bad roads represent an additional cost for transporting cargo and passengers and are more insecure, which also brings a social cost”, says the executive director of the confederation.

The Ministry of Transport recently released a 100-day plan for the road and rail sectors that will have around R$ 1.7 billion to resume and intensify works.