A note on the increase of expenditures with the federal government payroll
Abstract
This paper shows the increase of the expenditures related to the Brazilian federal
government t payroll and the payment of retired people previously employed by the federal
government. This variable suffered a jump of around 2.5 points of the GDP between 1985
and 1995. It is also shown the evolution of the aggregate value and the composition of this
kind of expenditure according to the different government agencies (including ministries).
It is concluded that this process is difficult to reverse in the short-term, especially in an
economy with a low level of inflation.
JEL Classification: H55.
Keywords: Public expenditure composition public pension