The Municipality foresees gross revenues and expenses of R$ 11.5 billion for the municipality in the Annual Budget Law (LOA) of 2023. Without considering intra-budgetary operations (which are carried out between government agencies), the net budget is R$ 10.2 billion for 2023 – 12% higher than the BRL 9.046 billion foreseen in the LOA 2022.
The figures were detailed this Friday (23/9) by the budget director of the Planning, Finance and Budget Secretariat, Carlos Kukolj, in an online public hearing broadcast on the municipality’s youtube channel.
The LOA 2023 project must be sent by the end of September to the Curitiba City Council (CMC), where it will be voted on by the end of the legislative year.
The LOA is based on the Budget Guidelines Law (LDO) approved in June by the CMC. It also included the 100 most voted actions by the Fala Curitiba portal, which had more than 22,000 participations and listed the population’s main priorities. Health, Education and Public Works were the areas with the highest number of demands.
“We built the budget for the next year with the active participation of Curitibans. We are going to invest more, we have many projects for our beloved Curitiba that will improve the quality of life of citizens”, says Mayor Rafael Greca.
The estimates provided for in the 2023 LOA are based on the forecast for the coming year of a growth in the Gross Domestic Product (GDP) of 0.49%, an inflation index, measured by the Broad Consumer Price Index (IPCA), of 5.79% and a basic interest rate (Selic) of 12.67%.
As has been happening in recent years, Curitiba has secured most of its budget with resources from the municipality itself. Of the current revenues of R$9.67 billion, R$5.99 billion (59.3%) must come from the municipality itself, R$1.5 billion (15.5%) from transfers from the Union and R$1, 3 billion (12.8%) transfers from the State.
The projection is for a collection of Tax on Services (ISS) – the main source of funds for the municipality – of R$ 1.91 billion; IPTU revenues of R$ 1.2 billion and ITBI of R$ 490.6 million.
Credit operations must total R$ 388.7 million, capital transfers, R$ 88.8 million, and other capital income must total R$ 53.4 million.
From an expense point of view, current expenditures (R$ 10.27 billion), capital expenditures (R$ 1.14 billion) and a contingency reserve of R$ 92.8 million are foreseen.
Among current expenditures, R$ 5.95 billion are allocated to personnel costs and charges and R$ 119.8 million to interest and debt charges.
The forecast is to invest BRL 666.3 million in 2023, 11% more than the BRL 598 million foreseen in the 2022 LOA. Of the total forecast for 2023, BRL 142.3 million should come from Treasury resources and BRL 523.9 million onlendings and credit operations.
The funds will be used in various projects to improve the population’s life, such as paving, construction of housing units, implementation of sidewalks, bike paths, revitalization of parks and woods, renovation of schools, expansion and modernization of the public lighting park.
This list also includes major projects: Inter II, Ligeirão Leste-Oeste, Linha Verde Norte-Sul, construction of Rua da Cidadania da CIC, the Bairro Novo do Caximba climate risk management project, implementation of the Veterinary Hospital, construction of the restaurant and Fazenda Urbana do Tatuquara, among others.
The LOA also breaks down budget expenditures by area. Among the highlights are Social Security, which should have 22.61% of the budget in 2022; Health with 21.58%; Education (18.58%); Urbanism (8.81%) and Administration (7.76%).
Contributions from the Special Social Security System should total R$ 632 million, 9% more than in 2021. Payment of precatories should total R$ 48 million.
Personnel expenses should be 47.4% of net current revenue. Spending on health at 23.84% of the main tax revenues and transfers and on education at 25.89% – in both cases above the constitutional limits of 15% and 25% respectively.