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Social security expenditures in Brazil: evolution, diagnosis and perspectives

ABSTRACT

This paper presents the evolution of the components related to the Social Security expenditures in Brazil. It is shown that between 1980 and 1990 the number of benefits maintained had a yearly growth rate of 4,8%. This rate was maintained between 1990 and 1996. This fact was explained by the combination of exceptionally negative impacts with some other specially favourable. In the first case, it is included the duplication, from 1,9 to 3,8 millions of retired people in the rural areas, between 1991 and 1994, while in the second case the fall of more than 8% in the: benefits excepted retirements and pensions during the current decade is the most outstanding phenomenon. Based on some hypotheses, some projections for the Social Security expenditures for the current and the next Government are made. It is concluded, based on some realistic parameters, that these expenditures should grow between 4,5 - more probably - and 5,5% by year, as an average, during the next years.

KEYWORDS:
Public expenditures; pension reform; public pension

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