Eduardo Leite says debt renegotiation with the Union is inevitable

For the governor of Rio Grande do Sul, Eduardo Leite (PSDB), it is inevitable to renegotiate the agreement that signed the Fiscal Recovery Regime (RRF) between the State and the Union. The Piratini Palace expects a referral still in 2023. According to the head of the Gaucho Executive, losses in ICMS collection from 2022 due to federal measures impose a different situation on the State’s finances than what was agreed upon in the regime.

“The decision on the ICMS rate and the forced change in collection completely changes the results contracted in the plan. Inevitably, the Union will have to make room for renegotiating the RRF. She herself gave cause (for the renegotiation), due to a revenue frustration that impacts on the balance of the plan”, said the governor, in a press conference that preceded Tá Na Mesa, a traditional event held by Federasul, which had Leite as a speaker this Wednesday. -Friday (8).

In addition to the debt with the Union, the government of Rio Grande do Sul is also participating in other negotiations with the federal government that can generate, in total, around R$ 19.5 billion for Rio Grande do Sul in a four-year cycle. The first item already mentioned is the change in the RRF due to ICMS losses.

In addition, there is discussion of a reform in the ICMS on gasoline, which would no longer be considered essential for taxation purposes, which would allow the application of a differentiated tax rate. The third point is the decision of the Federal Supreme Court on Tariffs for the Use of Electric Transmission and Distribution Systems (TUSD and TUST).

“I think it’s difficult to agree around BRL 5 billion. The biggest chance is something around R$ 3 billion, R$ 3.5 billion in compensation. With this agreement that is being drawn up, the State will again stop paying the debt for a period, reducing the installments from the stock”, highlighted Leite.

According to Leite, the return of the ICMS on the TUST and TUSD calculation base will represent a tax recovery for the State in the order of R$ 2.5 billion a year – or R$ 10 billion in the four years of this government. On the other hand, it also means an increase in electricity bills, around 9% for the people of Rio Grande do Sul.

The governor also highlighted the non-essentiality of gasoline in the ICMS, which would allow charging different rates, which could generate about R$ 1.5 billion per year to the State Treasury coffers – or R$ 6 billion in a four-year cycle .

“There are pending issues that affect our planning and the RRF. It needs to be resolved so that we can, with the resolution on what is State revenue and what is the debt stock, renegotiate. It is inevitable to have some kind of renegotiation, due to these changes that occurred especially last year”, reinforced Leite.

BRL 10 billion in four years – ICMS levy on TUST and TUSD charges, around BRL 2.5 billion per year

R$ 6 billion in four years – Non-essentiality of gasoline, allowing differentiated charges, which would generate a high collection of R$ 1.5 billion per year

R$ 3.5 billion – ICMS offsets through renegotiation of the Tax Recovery Regime, with the State failing to pay debt installments and, at the same time, reducing the debt stock with the Union

Questioned about the succession process in the presidency of Banrisul, Governor Eduardo Leite (PSDB) said that he is considering keeping Cláudio Coutinho at the head of Banco do Estado do Rio Grande do Sul.

“It’s a great painting, it gave enormous collaboration and, without a doubt, it’s a possibility that I consider its permanence. I am analyzing a decision on Banrisul”, said the toucan.

Asked if the process is under discussion, the governor replied with a joke: “A discussion of mine with myself”. The state is the bank’s largest shareholder. Afterwards, he laughed and said that he respects all shareholders, but reinforced that the decision is the governor’s.

“I am considering the challenges I see for the bank in this new cycle. I consider Cláudio Coutinho to stay because he is a qualified and responsible person. We made progress on many fronts in the bank’s governance. The bank has a better structure, in our view”, he reinforced.

Even listing aspects that he considers positive in the bank, Leite once again aired the possibility of privatizing Banrisul – something that he claims is not guided only by political commitments signed in the 2022 election.

“The debate on the privatization of the bank should not be a taboo, but I made a commitment. Politics is concession, gestures from part to part. In order to defend an agenda that we consider important, we assumed the commitment of not forwarding the privatization of the bank”, he said.

The decision on Banrisul’s succession should be taken by Leite still in March.