Final result of the Census may aggravate mayors’ fight over the transfer of the FPM – News of Brazil
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Cleber Barbosa
From the Editor
The city halls that received with relief the decision of Minister Ricardo Lewandowski, of the Federal Supreme Court (STF), to disregard the population preview of the Census in the definition of the transfer coefficients of the Participation Fund of Municipalities (FPM), need to prepare for when the survey is completed. This is the recommendation of public budget specialist Cesar Lima, consultant for the Brasil 61 portal, from Brasilia.
“Municipalities have to be prepared, because despite not being consolidated, most likely there is a bias that those data are consolidated in the way they were put”guide.
Based on IBGE data, the Federal Court of Auditors (TCU) updated the participation coefficient of 1,194 municipalities, of which 863 had a reduction due to the population drop. As a result, the “downgraded” cities began to earn less from the FPM. Already the 331 registered more inhabitants enough to start receiving more. The changes were short-lived, as the minister suspended the TCU’s decision.
However, with the Census expected to be completed in the first quarter of this year, local managers must remain alert. “With the exception of those municipalities that are very much in line with regard to the FPM population ranges, the vast majority will have to prepare, both for the increase in their range and for a decrease as well. The interesting thing is that they prepare and plan already anticipating this new reality”.
transfer
While the complete Census is not out, the city halls continue to receive FPM transfers based on the coefficients adopted from 2018. This Friday (10), the municipalities share almost R$ 12 billion referring to the first installment of February.
The value is 8.56% higher than in the same period last year. But if inflation in the period is taken into account, the increase drops to 4.22%. Specialist Cesar Lima states that, despite the increase in this transfer, the recent FPM series indicates a downward bias. “Most likely due to the Selic rate remaining very high, which inhibits household consumption and, also, with this period, there is a certain post-Christmas hangover and consumption is actually a little lower”.
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