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Politics & Regulation

Budget cuts for 2025 generate crisis between ministries

Government bodies say planned cuts will not cover expenses

Budget cuts for 2025 generate crisis between ministries

Photo: Marcello Casal Jr - Agência Brasil/disclosure

O PLOA (Annual Budget Bill) provides courteous de 14 % No. budget do MME (Ministry of Mines and Energy) to 2025, which represents a estimate de R $ million 483. Last year, the budget was R$561 million.

O minister do MME, Alexandre Silveira, requested, through letter sent ao MPO (Ministry of Planning and Budget), a recomposition de R $ million 97, trying to prevent the court in the budget come to fruition. 

Silveira argues that there is need de more features to maintain the efficient operation da PPSA (Pré-Sal Petróleo SA), state-owned responsible for the management of contracts de oil.

Still through the craft, the minister states that they are needed R$ 580 million to maintain the Operação.

According to Siop (Integrated Planning and Budget System) of the federal government, MME account with budget de R $ million 478,5, being that R $ million 15,9 are blocked from July this year, when the federal government contingency R$15 billion in budget.

PPSA Budget Structure

After the Union's last oil auction, which took place in July this year, PPSA projects growth in its sales revenue from R$9,84 billion in 2024 to R$17,49 billion in 2025.

The SNPGB (National Secretariat of Petroleum, Gas and Biofuels) published a note in which the MME states that it will be necessary to increase the budget allocated to the state-owned company.

“When comparing the 2024 LOA with the 2025 monetary reference, for example, the MME must disburse R$97.008.735,00 more for next year, representing, therefore, R$220.889.537,00 reserved in order to ensure the full operation of PPSA”.

The report presented by the MME mentions decisions by the TCU (Federal Audit Court) that address the allocation of PPSA resources. 

“These rulings contain a recommendation that the PPSA, the MME, the Ministry of Planning and Budget and the Ministry of Finance adopt measures to mitigate the risk of not appropriating budgetary resources for the state-owned company, so that its operation is not harmed. ”.

Impact on Regulatory Agencies

Coarf (Committee of Federal Regulatory Agencies) released, last Friday (16), a note joint meeting in which the entity expresses its concern about the 14% cut in the budget of regulatory agencies, since in March, the government had already cut 20%.

“Considering the new cuts and the lack of recomposition, it will be necessary for Agencies to reduce half the value of their contracts and expenses, close headquarters, drastically reduce services to the external public, inspection actions and significantly limit institutional representation”.

“Therefore, there is an imminent risk that the activities of Regulatory Agencies will be critically affected and that their legal duties will not be adequately fulfilled.”

To meet the fiscal targets established for this year, the Executive Branch implemented blockades and contingencies in several sectors. 

The MME, the ANEEL (National Electric Energy Agency) and ANP (National Petroleum Agency) suffered resource freezes totaling R$35 million.

Following guidance from the Ministry of Finance, the Aneel revealed an allocation of R$1,5 million to ensure the continuity of the transmission line monitoring system. 

This amount is taken from the inspection program in the states, whose total cost is R$17,8 million. The agency ensures that, even with the reduced budget, activities will continue normally.

The government is finalizing the 2025 PLOA, which needs to be delivered to the National Congress at the end of the month. The MPO informed that it will not comment on the MME budget until the congress takes place. 

Information extracted from epbr and Estadão

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Yvana Leitão
About the Author
Yvana Leitão

Producer of the Papo Solar Podcast. He has experience producing and preparing journalistic articles. Graduated in journalism from the Escola Superior de Administração, Marketing e Comunicação de Campinas.

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