Resources for Low-income Popular Housing Project Will Drop by 50 Percent

RIO DE JANEIRO, BRAZIL – One of the prior leftist administration’s flagship symbols, the housing program ‘Minha Casa Minha Vida‘ (“My House My Life”), which injected R$113 billion (US$28 billion) in housing grants from 2009 to 2018, is withering.

For next year, the Federal Budget is earmarking only R$2.71 billion, half of the budget forecast for 2019. The money should be used only to honor works already in progress, with no new engagements.

This lack of prospect of new resources has already halted associations and cooperatives in the city of Fortaleza, which hoped to reduce the housing deficit of 90,000 families under the program. The demand on the city government has already begun.

The governor of Ceará, Camilo Santana, said he expected the federal government to honor at least the ongoing contracts.

Cuts

The Ministry of Regional Development (MDR), which is in charge of “Minha Casa”, has suffered one of the largest cuts in the so-called discretionary expenses, which can be allocated with greater freedom and include investments. The reduction was 27.1 percent compared to the forecast for 2019, totaling R$6.56 billion.

In a note, the portfolio reported that the ministry’s teams are conducting studies to assess the impact of the budget reduction and plan the actions for next year. “It is a priority to ensure the continuity of projects already underway and those already contracted, particularly in the area of housing and water security,” said the MDR. The note does not mention new contracts.

According to the Ministry, the 2020 Budget will be allocated between the various portfolio units, according to criteria of demand, program prioritization, project and construction progress, and deliveries to society, among others.

The information is from the newspaper O Estado de S. Paulo.