Survey shows how much Brazilian Amazon capitals spend per citizen

By Thais Matos – From Cenarium

MANAUS (AM) – Essential services are among the main priorities of Brazilian municipalities. The Federal Constitution mandates that cities allocate a minimum portion of public funds to areas such as health and education, among others. However, the application and amount of these resources vary significantly between municipalities, especially in the capitals of the Legal Amazon states.

A survey conducted by the National Front of Mayors (FNP) on municipal expenditures in health and education revealed regional disparities among the nine states that make up the region: Acre, Amapá, Amazonas, Maranhão (partial), Mato Grosso, Pará, Rondônia, Roraima, and Tocantins.

In health, expenditures on Public Health Actions and Services (ASPS) were considered, which include salary payments, scientific and technological development, production, acquisition, and distribution of inputs for health services. In education, expenditures on Maintenance and Development of Education (MDE) were analyzed, including payment of professionals, training, construction, and renovation of school buildings, among other aspects.

Capitals of the Legal Amazon with the highest and lowest health expenditures per capita

In Cuiabá, the capital of Mato Grosso, the per capita expenditure was R$824, while the state average was R$984. The city has a population of 650,877.

The municipality of Palmas, in Tocantins, recorded a higher per capita expenditure than the state average, at R$724 for each of the 302,692 residents of the capital, while the state spends R$649.

São Luís, the capital of Maranhão, has a per capita expenditure of R$679, higher than the state average of R$415. The city has a population of 302,692.

Porto Velho, the capital of Rondônia, ranks fourth among the capitals of the Legal Amazon states in health expenditure per capita, at R$677 for each of its 460,434 residents. The state expenditure is R$709. The city has a population of 460,434.

In Boa Vista, Roraima, the per capita expenditure on health is R$590, higher than the state average of R$495. The capital has 413,486 residents.

The capital of Amazonas, Manaus, had a per capita expenditure of R$543 for its 2,063,689 residents. At the state level, the expenditure was R$486.

The capital Rio Branco (AC) spent R$521 per capita for its 364,756 residents, a higher amount than the state average of R$395.

Belém, the capital of Pará, had a per capita expenditure of R$488 in 2023, with a total population of 1,303,403. The state average expenditure was R$428. The city has 1.3 million residents.

In Macapá, the capital of Amapá, the per capita expenditure was R$378, compared to the state average of R$346. The city has a population of 442,933.

Influences on Public Spending

The economist and professor Lenice Benevides explained that there are several key ways to analyze the factors driving increases in public spending, such as revenue growth, population growth, and extraordinary events.

“When a municipality experiences an increase in revenue, it can choose to invest beyond the minimum mandatory limit in health and education. Population growth also demands higher expenditures to meet the needs of the population. Although the constitutional limit for health and education is 15% and 25%, respectively, population increases may require additional resources, which also depend on proportional growth in municipal revenue”, the expert explains.

Benevides adds: “Additionally, extraordinary events, such as the COVID-19 pandemic, forced federal, state, and municipal governments to significantly increase investments in health to handle the emergency”, she said.

The economist also stated that despite the established minimum limits, each federative entity has the autonomy to decide whether to invest beyond the necessary amount in specific areas. This decision depends on the priorities of each government program, such as building more schools, hiring healthcare professionals or developing infrastructure to meet the population’s needs.

Lenice Benevides remarked that, to implement effective public policies, it is crucial to thoroughly understand the municipality, its indicators, and its reality. This knowledge is essential to adequately address the demand for health and education services. In the case of health, it is evident that the minimum resources required by law are insufficient to meet the municipalities’ needs.

“In Manaus, for instance, we face many deficiencies. Medications are lacking in Basic Health Units (UBS), some areas of the municipality remain underserved due to the lack of healthcare facilities, and many UBS lack adequate equipment to perform necessary exams. These shortcomings illustrate how current health funding falls far short of what is needed”, she commented.

Capitals of the Amazon Region Ranked from Highest to Lowest Spending on Education Per Capita

According to an FNP survey on education spending, Palmas, the capital of Tocantins, invested R$ 1,046 per capita, a figure higher than the state average. The city has a population of 302,692 inhabitants.

In Rio Branco, the capital of Acre, spending was R$ 1,002 per capita, representing a 27.94% increase compared to the state average, which stood at R$ 722 per person.

In Boa Vista, the capital of Roraima, the investment was R$ 884 per capita, about 10% above the state average. The city has an estimated population of 413,486 inhabitants, according to the data used in the survey.

In Cuiabá, the capital of Mato Grosso, education spending per capita was R$ 813, a figure 25.22% below the state average of R$ 1,118. The city has approximately 650,000 inhabitants.

With a population of 1,037,775 inhabitants, São Luís, the capital of Maranhão, reported a per capita expenditure of R$ 800. The city exceeded the state average by 48.70%.

In Manaus, Amazonas, per capita spending was R$ 697, surpassing the state average for education. The city, with just over 2 million inhabitants, ranks above the state average.

Porto Velho, the capital of Rondônia, invested R$ 693 per capita, a figure below the state average of R$ 839. The city has an estimated population of 460,432 people.

Macapá, the capital of Amapá, had a per capita expenditure of R$ 622, exceeding the state average of R$ 574. The city has approximately 443,000 inhabitants.

In Belém, the capital of Pará, per capita spending was R$ 511, a figure 11.74% below the state average of R$ 579. The estimated population of the capital of Pará is 1,303,403 inhabitants.

Smaller Cities

Smaller municipalities heavily rely on public funds, especially the Municipal Participation Fund (FPM). Municipal administrations often lack sufficient budgetary resources to meet basic needs, making them highly dependent on federal government transfers. These transfers are essential to cover expenses in healthcare, education, and municipal maintenance.

According to Lenice Benevides, the dependence on federal government funding is nearly total in cities with populations of up to 10,000. She highlighted that, in Amazonas, nearly all cities fall into this category. The expert also explained that while some municipalities manage to implement effective public policies, others face significant challenges in ensuring essential services for the population.

“In places with up to 10,000 inhabitants, this dependence is nearly total. In the state of Amazonas, for example, most municipalities fall into this category. And when we talk about efficiency, it’s about using resources in a way that leads to real improvements in health and education indicators. However, achieving this efficiency is not simple. Some municipalities succeed in implementing effective processes and achieving positive results, but many face significant challenges in public administration, which hinders substantial progress in these indicators”, Benevides commented.

The economist emphasized that delays or insufficiencies in investments in health and education have significant impacts and tend to widen economic and social disparities among municipalities. In regions with low investment levels in these areas, it is common to observe high crime rates and elevated disease rates.

“The lack of adequate public policies further worsens the situation. The government often needs to create specific programs to address health demands, such as initiatives for diabetics, women, men, and children. However, when the available resources are insufficient to meet these demands, the impact is particularly severe on low-income populations, such as those living on up to three minimum wages, which is a common reality in Amazonas”, she emphasized.

Lenice also pointed out that in Manaus, the situation is even more concerning due to the high concentration of low-income populations in areas with inadequate infrastructure. “The distribution of medicines, schools, primary healthcare units (UBSs), and medium-sized hospitals does not adequately meet the growing demand. In addition to the problem of insufficient funding, there are also inefficiencies in how resources are applied. That is, the investments made often fail to result in significant improvements in health and education indicators”, the economist explained.

The gap between wealthy and poor municipalities also widens, making it more difficult for the most vulnerable municipalities to reach the level of development seen in those with better financial conditions. Lenice stressed that reversing this scenario requires increased investments in two key areas: healthcare and education.

“To reverse this situation, it is essential not only to increase the resources allocated to healthcare and education but also to improve the efficiency in managing these resources, ensuring that investments yield tangible results, such as better health, education, and quality-of-life indicators”, she concluded.

Tranlated from Portugueses by Gustô Alves