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Three Years of the Real Plan
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Three Years of the Real Plan
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The government has been preparing a genuine "revolution" for this area. Such revolution is based on a change in the manner of spending resources, which previously were disbursed directly to companies, states and cities for large-scale projects. In the past, large amounts of money were spent without producing much result.
The manner of channeling these funds was changed by creating a mechanism better suited to meeting the individual demands of the lowest income sectors. Multiple mechanisms were created to satisfy the demand of the public rather than just the demand of large companies.
The federal government, with just the investments made in 1995 and 1996, will directly benefit 3.9 million families throughout the country, facilitating the creation of 646,000 new jobs. In all, R$4.8 billion have been invested in 3,078 projects in 2,400 municipalities. Of these projects, 900 have been concluded and 2,178 are underway.
The budget this year is R$6.3 billion. These funds will benefit an estimated 5.2 million families and will create 1.2 million jobs.
When the government took office in January 1995, 9.62% of the urban houses were not supplied with treated water. With what the federal government has spent in this sector, including the counterpart funds of the states and cities, 788 projects have already been initiated in 644 municipalities. When these projects are completed, the percentage of urban houses without treated water will have been cut in half: from 9.62% to 4.82%.
The investments made during 1995 and 1996 on urban sewage systems are benefiting 6.8 million Brazilian families. With these outlays, the government is reducing by 18.5% the number of residences in the country that lack sewage services. Only a little more than 20% of houses will still lack sewage services.
Just as the Real Plan was fundamental to the resumption of investment in sanitation, creating the conditions to medium- and long-term planning, it was also of great importance for housing. It caused a major increase in the purchasing power of the population, especially of the lowest income sectors, and it reestablished credit facilities. The principal indicator of this beneficial effect is the increase in the sales of such housing construction materials as cement and asbestos shingles and tubing.
The federal government housing policy also made possible progress in reducing the enormous housing shortage, either through the construction of new housing or through improvements in units that had deteriorated.
For the programs financed with resources of the FGTS or through the federal government budget, the Secretary of Urban Policy in the Ministry of Planning allocated R$2 billion, including counterpart funds, during 1995 and 1996. These resources funded the construction of 83,000 housing units, the grant of 63,500 credit lines, and contracts for 400 other works. These programs will benefit 273,300 families and will allow the creation of 90,100 new jobs. The resources of just the Pro-Housing Program and Habitat-Brazil, designed for families with incomes of up to three minimum salaries, will allow the signing of 234 contracts for urban improvements in shanty towns and poor neighborhoods. These contracts will benefit almost 99,000 families. Moreover, these programs will undertake 147 housing and infrastructure projects. When these projects are complete, they will benefit more than 27,000 families.
