Over 300 senior officials in Brazil resign over budget cuts

Decision by federal officials to resign has led to vacancy of at least 500 senior posts across Brazil

File: President of Brazil Jair Bolsonaro reacts during the exchange of the presidential guard at Planalto Palace on 16 December 2021 in Brasilia, Brazil (Getty Images)

Nearly 300 tax officials in Brazil have resigned from their post due to the government’s decision to slash the budget of the tax and customs agency, union officials said on Wednesday.

The anger is further fuelled by President Jair Bolsonaro’s decision to provide a pay hike to police personnel which took precedence over the earlier promise of increasing the salaries of tax agency officials, reported Reuters.

The cuts were moved as a part of the government’s 2022 budget which was passed by Congress on Tuesday, following which at least 324 auditors working with tax agency, Receita Federal, stepped down from their leadership position. The decision by the federal officials has left at least 500 senior posts vacant across Brazil, said the Sindifisco union.

Under the new budget, around 1.7bn reals ($300m) were allotted to Brazil police in pay rise, which the union said were allocated from the bonus that its members were supposed to receive.

"Adding insult to injury, the Receita Federal’s own resources will be cut to satisfy the readjustments agreed with the police, in a demonstration of absolute disrespect to the tax administration,” said the union. “It is no longer our burden to sustain a budget built to our disadvantage.”

The incumbent president is currently trailing behind former president Luiz Inacio Lula Da Silva, in the polls ahead of 2022 presidential elections. He is facing the heat over inflation and backlash for his handling of the pandemic in the country. The resignations ahead of the election is adding to the condemnation Mr Bolsonaro from the federal public servants.

Additional reporting from wires