A new tool created by Folha and Datafolha shows which Brazilian states are giving their populations more bang for their bucks, by using state budgets efficiently and offering more educational opportunities, health services, infrastructure and public safety.
REE-F (Portuguese acronym for Folha States Efficiency Ranking) considers 17 variables grouped in six categories to measure budget efficiency of Brazil’s 26 states, while also making a snapshot of their finances.
In a scale from 0 to 1, five states scores higher than 0.5, thus being considered “efficient”: Santa Catarina, São Paulo, Paraná, Pernambuco and Espírito Santo.
Another six states show “some efficiency” in using their resources and the other 15 states fall under “little efficient” or “inefficient”.
REE-F’s goal is to measure how state governments are delivering compulsory basic services, according to their financial resources.
To rank higher, states need to spend less in things such as programs to have more children attending school, employ more doctors and get more beds in public hospitals, build sewer systems and highways, and also attain lower crime rates.
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When this information is matched against each state’s economic activity, REE=F shows that those who kept or enlarged the industrial and services portions of their GDPs (Gross Domestic Product), with the ensuing increases in tax revenue, tend to be more efficient.
In contrast, the states that rely on agriculture, government and federal funding as revenue sources do worse.
The new ranking shows correlations with the United Nations’ Human Development Index (HDI). It also uncovers that high infant mortality and homicide rates are the strongest indicators of inefficiency in a Brazilian state. Another finding is that higher per capita revenue doesn’t necessarily translate into better performances.
The study also brings an ample overview of challenges, such as decrease of tax revenue and investments due to the recession, and the sharp increase of expenses brought by the bloated government staff, both active and retired.
With increasing less tax revenue, Brazilian states have a new problem ahead: almost half of all government works are reaching retirement age, which will take away even more money from the basic services.
Translated by NATASHA MADOV