12/05/2008 10h31
Government promises to spend 1.2% of the GDP in works
Valor Econômico - 12/05/2008
The government informed the building industry that, in 2009, it will transfer to the sector, through the payment of public works, the equivalent to 1.2% of the GDP (nearly R$ 35 billion/US$ 15.2 billion). The guarantee, according to the president of the CBIC (Brazilian Construction Industry Chamber), was given by the Minister of Planning Paulo Bernardo. The construction sector, which is responsible for 40% of the Gross Fixed Capital Formation in Brazil, counts on the execution of public investments in 2009 in order to keep the activity. "Private demand is at a standstill", revealed Simão, who met Ministers Paulo Bernardo and Guido Mantega (Finance) yesterday. The real estate market, according to Simão, reduced its rhythm, but is working. It is responsible for 40% of the demand of the sector and the public sector is the principal contractor of the other 60%. In the meetings held yesterday, the businessman asked the government for the reduction from 30 to 10 days of the term for payment of the public work invoices. It would be a way to give a relief to the companies at a moment in which they have been facing difficulties to fund their working capital. According to him, Minister Guido Mantega was to study the request. Another request was postponing, for another two years, the measure that maintained the cumulatively of the collection of PIS (Social Integration Program) and Cofins (Social Security Financing Contribution) for the home-building companies. The exception will end on the 31
st of this month. According to the businessman, the Minister promised to accept the request.
