Governors of the Northeast ask for greater participation of states in the Budget

Governors from eight states in the Northeast participated in a meeting in the Senate, this Monday (25), with the rapporteur of PEC 51/2019, senator Rogério Carvalho (PT/PE), to press for a recomposition of the losses of the Participation Fund of States (FPE).

PEC 51/19, which increases the states’ share of the Union’s budget, has been awaiting a vote in the Constitution and Justice Commission (CCJ) since 2019. The text aims to increase the share of revenue from 21.5% to 26% taxes on income and earnings of any nature (IR) and on industrialized products (IPI) allocated to the Participation Fund of the States and the Federal District.

Governors Fátima Bezerra (Rio Grande do Norte) and Raquel Lyra (Pernambuco) and governors Rafael Fonteles (Piauí), Elmano de Freitas (Ceará), Jerônimo Rodrigues (Bahia), Carlos Brandão (MA), João Azevêdo (PB) were present. ) and Fábio Mitidieri (Sergipe and president of Consórcio Nordeste).

According to Senator Rogério, “the states want to have treatment similar to the treatment that has been given to municipalities over time and demand that we follow PEC 51/2019”.

At the meeting, the governors also pressed to discuss with the government and the tax reform rapporteur, senator Eduardo Braga (MDB-AM), the criteria for distributing the resource that will make up the Regional Development Fund.

“This concern from governors is very pertinent. Finally, they bring an agenda that is the need to recover the losses of the FPE which, with the reduction in revenue, needs to find a way to close the accounts”, stated Senator Rogério.

For the governor of Piauí, the tax reform agenda involves the criteria for apportioning the FPE within PEC 51/2019, as a way of ensuring that this fund fulfills its mission of reducing regional inequalities.

“This criterion has to be linked to the per capita income of the states. This recomposition of the FPE, which has already been approved in the Chamber, is coming to the Senate and there is no rapporteur yet, but the states want equal treatment in relation to the FPM. The FPE and FPM must have the same recomposition provided for by law”, said Fonteles.

With information from Agência Senado.