Saturday, July 13, 2024

Federal Regulatory Agencies Issue Joint Statement on Budget Cuts

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The 11 federal regulatory agencies operating in Brazil issued a joint statement regarding their critical situation due to a budget cut of approximately 20%. This reduction in funds adds to an existing staff shortage, with over 65% of agency positions currently vacant. The agencies emphasized the essential role of regulation in ensuring social justice, individual well-being, economic balance, infrastructure development, and the provision of adequate public services. They highlighted the need for strong, active regulation to maintain the achievements gained through regulatory measures.

Over the years, the federal regulatory agencies have demonstrated their ability to strengthen and consolidate regulation in Brazil, contributing significantly to national development through effective regulation and oversight. These agencies are responsible for ensuring that services and infrastructure meet societal needs.

Brazil has 11 federal regulatory agencies:

  1. National Water Agency (ANA)
  2. National Civil Aviation Agency (Anac)
  3. National Film Agency (Ancine)
  4. National Electric Energy Agency (Aneel)
  5. National Mining Agency (ANM)
  6. National Agency of Petroleum, Natural Gas, and Biofuels (ANP)
  7. National Supplementary Health Agency (ANS)
  8. National Telecommunications Agency (Anatel)
  9. National Waterway Transportation Agency (Antaq)
  10. National Land Transportation Agency (ANTT)
  11. National Health Surveillance Agency (Anvisa)

These agencies regulate various economic sectors, which represent a significant portion of Brazil’s GDP. Their role is to create norms, control, and oversee market segments operated by companies to ensure public interest.

Federal Regulatory Agencies’ Public Policies Drive National Development and Enhance Quality of Life

The agencies have implemented numerous public policies that significantly contribute to the country’s development and improve citizens’ quality of life. These include expanding telecommunications services, advancing energy transitions, improving the electric energy market, ensuring fair tariffs, enhancing civil aviation safety, ensuring road and waterway transport quality, overseeing the safety of fuels, medications, medical equipment, health services, and more.

Over two decades, the agencies have made substantial progress in service and product delivery by regulated companies, providing societal benefits through a regulated market with predictability, social participation, and balance among actors, ultimately fostering economic and sustainable development. The agencies have also made significant strides in improving and modernizing strategic and regulatory governance, aligning with new technologies, regulatory best practices, and sustainability. These changes are crucial for modern, efficient, transparent regulation committed to societal well-being.


Federal Regulatory Agencies Warn of Budget and Staffing Crisis Threatening Essential Functions

Despite their achievements, the agencies face a critical budgetary and staffing situation that threatens to undermine these advances. Collectively, the agencies generate over 130 billion reais annually, while the projected budget for 2024 was about 5 billion reais, insufficient for their needs. The unexpected 20% budget cut jeopardizes their ability to perform essential regulatory actions.

Moreover, over 65% of agency positions are currently vacant due to retirements, resignations, and deaths, with authorized vacancies insufficient to fill even half of these positions. This staff shortage hampers the agencies’ ability to effectively regulate, an essential function for protecting public interest.

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The agencies concluded by reiterating the importance of technical, strong, and active regulation for social justice, individual well-being, economic balance, infrastructure development, and adequate public service provision. They urged for continued support to maintain the gains achieved through regulation and to ensure continued progress in Brazil’s national development.


Resource: National Health Surveillance Agency, June 03, 2024

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