After meeting with governors, Pacheco criticizes the current fiscal recovery model

The president of the Senate, Rodrigo Pacheco (PSD-MG), criticized the current fiscal recovery regime and stated that the measure is not beneficial for the states. During a press conference, this Tuesday (26), Pacheco considered that the current model “only sacrifices servers”.

According to Pacheco, solutions for renegotiating states’ debts with the Union will be defined in the coming weeks. The federal government must send the bill to the National Congress within ten days.

The proposal announced by Finance Minister, Fernando Haddad, after a meeting with governors, is to temporarily reduce, from 2025 to 2030, the interest on state debts. In exchange, the states that accept the agreement commit to increasing enrollment in professional education combined with full-time secondary education.

The investment in education will be made with the money saved from the drop in interest rates. The goal, according to the government, is to reach more than 3 million students enrolled in technical secondary education (EMT) by 2030. For states that reach their goals within six years, the reduction in debt interest will be permanent.

Pacheco reinforced that the correction rate for unpaid debts needs to change, as it generated a substantial increase in state debt. Debts are updated by the Broad National Consumer Price Index (IPCA) plus 4% and charges.

“The change in the index, I consider it to be something inevitable, that needs to be implemented for the good of the states and for the good of the Union. But, in addition to discussing the correction index, we need to have a sustainable debt payment program (. ..) to solve the problem in a shorter period of time and be able to effectively pay the debt”, he maintained.

Pacheco’s announcement was made after a meeting with governors Romeu Zema (MG), Cláudio Castro (RJ), Ratinho Júnior (PR), Renato Casagrande (ES), Eduardo Leite (RS), Tarcísio de Freitas (SP) and the vice -governor Marilisa Boehm (SC). Ratinho Júnior is the president of the Consortium for the Integration of the States of the South and Southeast of Brazil (Cosud).

Minas Gerais’ debts to the federal government exceed R$160 billion. But the problem also affects states such as São Paulo, Rio Grande do Sul, Rio de Janeiro and Goiás. Minas Gerais’ debt with the Union began in 1998, amounting to R$15 billion.

Public safety was another issue discussed with the governors, according to Pacheco. The governors defended the approval of projects relating to so-called custody hearings, the legal security of police officers during stops, the sharing and integration of data and information between all police forces in the country and the creation of the qualification of homicide at the behest of a criminal organization.

*With information from Agência Senado