After Protests, Brazil's Oil Money Will Go To Education and Healthcare
After this summer's massive protests against spending choices by the once-popular government, Brazilian President Dilma Rousseff has passed a law that will reserve all of Brazil's oil royalties for healthcare and education.
The new law stipulates that 75 percent of royalties will go to education while another 25 percent will be for health care. The amount of royalties expected over the next year is projected to be about $800 million.
"For me and my government education is the principal pillar to transform Brazil into a great nation, assuring that our people are freed from poverty," Rouseff said about the new law.
With the expansion of Brazilian oil production, the amount spent on education and healthcare over the next decades will be prodigious. New oil fields alone could net between $150-300 billion in royalties over the next 35 years.
Protests in June brought over 100,000 protesters to the streets of Rio de Janeiro, demanding that the Brazilian government refocus on social programs instead of lavish spending on the 2014 World Cup and 2016 Olympics.