07/01/2024 – 5:00
A new study by the Getulio Vargas Foundation (FGV) has calculated the economic impact of the Paulo Gustavo Law on the state of Rio de Janeiro: for every R$1 spent, R$6.51 is returned to society and public coffers. The study will be launched at an event held by the State Department of Culture on Monday, the 1st.
“In addition to culture generating equity, inclusion, knowledge and others, it has great economic importance,” says one of those responsible for the study, Ique Lavatori, project consultant and professor at FGV.[A cultura] generates employment and income for the population, in addition to generating tax payments for the government in all three spheres [municipal, estadual e nacional].”
+Cultura announces adherence of 98% of municipalities to the Paulo Gustavo Law
Regulated in December 2023, the Paulo Gustavo Law guarantees the distribution of resources for the execution of cultural projects throughout the national territory until December 31, 2024. The total released was R$3.9 billion distributed between municipalities, states and the Federal District.
The Rio de Janeiro state government was responsible for R$139 million, an amount with which it achieved an impact of R$852.2 million. The Secretary of State for Culture and Creative Economy, Danielle Barros, states that she was responsible for executing the largest volume of resources in the history of the department, all at once, and in a short period of time.
Of this total, R$498.9 is moved within the creative sector itself, and R$353.3 million indirectly in other links in the production chain. Tax collections reach R$ 132 million.
Sector potential
According to the study, the power of culture lies in its ability to generate impacts throughout the state’s economic chain. The study used a classification of 68 sectors and demonstrated the effects of creative projects in all of them.
Through 19 notices, 1,190 proposals were selected in all regions of the state. The FGV study sought out those responsible for implementing cultural actions to understand the costs and the structure operated by each one.
Thus, it was found that 66.3% of the sector’s expenses were up to R$24,999.99. Almost all (90%) of payments were below R$99,999. The relatively low value demonstrates a large participation of micro and small companies (MSEs), according to those responsible for the research.
“This is very important since they [MPEs] are the major generators of employment and income in the country”, says Lavatori. The number of jobs created, according to the calculations, was 8,687 directly and 2,839 indirectly (i.e., in other sectors that make up the production chain). The total number of new jobs is 11,526.
“The results demonstrate the sector’s readiness to respond to demands and the importance of mechanisms to promote culture for economic leverage. And the state administration, by prioritizing this initiative, reinforces transparency and commitment to public policy,” says Luiz Gustavo Barbosa, executive manager of FGV Projetos.
When talking about the public, 80% of projects are intended to receive people during their execution. The estimate is 2.1 million people at the events, including residents (85.3%), day-trippers (4.9%), Brazilian tourists (9.0%) and foreigners (0.8%). The last two have the highest average expenditure, of R$294.54 and R$437.16, with items such as travel, food, accommodation, shopping, tours and others.
#invested #Paulo #Gustavo #Law #return #R6.51 #points #FGV