Summary

SAI Brazil conducted an audit of the use of funds of the Brazil’s Severance Pay Fund (Fundo de Garantia do Tempo de Serviço) between 2020 and 2024. The audited funds amounted to 743 billion reals (USD 142.43 billion). The audit results revealed a low level of the Fund budget execution in the areas of urban infrastructure and basic sanitation. Out of the 28 billion reals (USD 5.37 billion) allocated for urban infrastructure development, only 3.4 billion reals (USD 0.65 billion) were used. This hinders the achievement of goals for improving the quality of life in cities. Within the "Sanitation for All" programme (Saneamento para Todos), 46.5% of the planned 24 billion reals (USD 4.6 billion) were used, with the majority allocated to the southeastern region. However, only 33% of resources were directed to the development of the northern and northeastern regions, which are in need of access to sanitation services and investments. *The Brazil’s Severance Pay Fund is a Brazilian public fund for employers to deposit 8% of an employees monthly salaries. Its purpose is to protect workers and promote investments in housing, sanitation and infrastructure to improve the quality of life for the Brazilian population.