Blocking 18% of the budget could compromise oversight, investments and services from regulatory agencies

Budget cut affects the work of regulatory agencies
The 18% block in the budget of federal regulatory agencies could compromise inspection activities, investments in technology and the provision of services to the population.
The amounts are part of a block of R$22.1 billion in the 2026 Budget made by the federal government at the end of May.
The warning comes from the president of the Committee of Federal Regulatory Agencies (Coarf), Guilherme Sampaio, who assesses that successive resource cuts have been reducing the operational capacity of these bodies.
A block in the budget is like a temporary "emergency brake" on government finances and happens when mandatory expenses, such as pension payments, rise more than expected. When this happens, the government needs to retain part of the money from non-essential expenses, such as works, so as not to exceed the allowed spending limit.
According to Sampaio, agencies have accumulated budget losses over the last few years. He states that, over a horizon of five to ten years, the sector's budget shrank by around 40%.
"When you take a five or ten year period, the agencies had a reduction of around 40% in their budget. Just corrected for inflation, this value should already be significantly higher", he stated.
For him, the new blockade worsens a scenario that was already considered critical.
"We are talking about an 18% contingency on a budget that is already smaller than that of previous years. If this is not reversed, it will compromise the activities of the agencies", he said.
Among the affected bodies, the National Land Transport Agency (ANTT) accumulates the biggest blockage of the year, in the order of R$ 57 million. Sampaio, who also presides over the agency, states that the measure puts at risk strategic actions planned for the coming months.
According to him, the following could be affected:
concession auction schedules;
inspection activities for passenger and cargo transport; and
projects aimed at the technological modernization of the agency.
"The auctions scheduled for the second half of the year, the inspection of passenger transport, the monitoring of the minimum freight floor and, in the short and medium term, the very execution of the obligations assumed in the concession contracts, may be impacted", he stated.
Given the scenario, ANTT is looking for alternatives to reduce the effects of the blockade. One of the possibilities is support from the Ministry of Transport, to which the agency is administratively linked.
According to Sampaio, conversations with the department are already underway to evaluate mitigation measures.
On previous occasions, the ministry transferred resources to reinforce the agency's budget and avoid interrupting activities considered essential. This time, however, the solution may be more complex, as the folder itself was also affected by the block.
Power transmission lines in the Brasília region.
REUTERS/Ueslei Marcelino
Other agencies
The National Civil Aviation Agency (Anac), which had R$24 million blocked from its budget, stated that it will be forced to immediately reduce around 40% of its inspection actions on regulated companies, such as airlines, flying clubs and aeronautical maintenance workshops.
✈ Anac reports that they will also be tests for certification of pilots and flight attendants have been suspended. Furthermore, certification processes for new aircraft will be interrupted, which may prevent new aircraft from entering into operation.
The agency also informed that it will need to reduce outsourced contracts and postpone investments in information technology.


"Institutional events were cancelled, many of them aimed at improving the operational safety of the airline sector, as well as the participation of civil servants in international forums and events in which Anac represents Brazil", stated the agency in a statement.
Anac will reduce inspection activities by 40%
Jornal Nacional/ Reproduction
The National Supplementary Health Agency (ANS), which had R$ 34.2 million blocked, said that it monitors the situation with concern and is still evaluating the impacts of the measure.
"At this moment, what can be said is that possible budget restrictions tend to require the reassessment of discretionary expenses, which may have repercussions on administrative modernization initiatives, digital transformation, technological evolution and institutional development projects", informed the agency.
The National Telecommunications Agency (Anatel) informed that it is analyzing the effects of the blockade on its activities.
"The ongoing process involves the review of internal schedules and ongoing activities, with the objective of identifying possible adjustments and prioritizing essential actions", said the authority.
The National Electric Energy Agency (Aneel), in turn, stated that the blocking of R$34.3 million could reduce inspection actions carried out by its own teams, due to limited resources for travel and daily allowances.
Decentralized inspections carried out in partnership with 16 partnered state regulatory agencies could also be affected. According to the agency, digital transformation and technological modernization projects may also be postponed.
Aneel warns that restrictions in infrastructure and information technology affect processes considered critical, compromise the authority's productivity and could cause delays with consequences for the entire electricity sector.
G1 asked the other regulatory agencies for a position, but received no response until the publication of the report.
When contacted, the Ministry of Planning reported that the blockade, detailed last Friday (29), affected ministries and government bodies in a widespread manner.
"Whenever possible, proportionality between blockades and the volume of discretionary expenditure in each of these Ministries and Bodies was observed", he stated.

Source: G1

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