RIO DE JANEIRO, BRAZIL – The budget of the Brazilian Agricultural Research Corporation (Embrapa), one of the main sources of new technologies for the agricultural sector, could be cut by 45 percent in 2020.
In 2019, the funds allocated to state-owned companies were R$3.6 billion (US$900 million). The federal government’s proposal for next year is R$1.9 billion and is under consideration by Congress.
The text has already begun to be discussed in the Joint Budget Committee, which consists of deputies and senators. They will give the first opinion on the federal government’s spending forecast for 2020.
Representative Domingos Neto (PSD-CE), rapporteur of the budget committee, said that the forecast cuts have reached all areas, but recognizes that the agricultural sector has a strategic role in the development of the country’s economy.
“The agricultural sector has all the necessary support to ensure the protection of a sector that drives our economy. Our work in the coming months will be to look at where there are more resources to cut and reallocate to where they are most needed,” explains Neto.
In October, deputies can submit amendments to the draft budget. The final vote is scheduled for December.
Currently, 90 percent of Embrapa’s budget is to cover payroll expenses. The remainder is for funding and investment in research.
Empraba’s management said in a note that for four years the budget has been declining and therefore, it has cut expenses.
It also mentions the reduction in the number of research centers and administrative units but acknowledges that if the budget is approved as is, research in important areas could be affected.
The note adds that some projects run risks, such as those of precision agriculture and automation, biotechnology, and animal health.
News of the cut concerns Embrapa’s former president, Sebastião Barbosa, who was dismissed by the government in July this year.
“If we are not careful, this represents the end of everything that has been accomplished by Embrapa over the years. The survey is a long-term thing. A state-owned company for agricultural research is fundamental,” said Barbosa, who did not want to comment on the budget cut.
Source: G1