Governors of the Northeast present Haddad with a plan to alleviate state debts

The governors of the Northeast Consortium met this Wednesday (3) with the Minister of Finance, Fernando Haddad, to discuss the debts of the states in the region. The group presented a plan with three proposals to increase revenue and asked that the federal government treat all federal entities equally. The governors pointed out that the financial problems were worsened by the revenue losses caused by the exemption from the Tax on Circulation of Goods and Services (ICMS), in force for almost two years.

The proposed alternatives foresee an increase in the percentage of transfers to the Participation Fund of the States and the Federal District (FPE), the extension of debts with financial institutions and the payment of precatório (debts recognized by the Court) and social security debts in installments.

The meeting took place at Palácio do Planalto, in Brasília. In addition to Haddad, ministers Rui Costa (Civil House) and Alexandre Padilha (Institutional Relations) also participated in the meeting.

The governor of Rio Grande do Norte, Fátima Bezerra (PT), president of the Consortium, highlighted that some northeastern states, even though they are less indebted than states in other regions, such as the South and Southeast, are having difficulty guaranteeing the cost of the public sector. , pay mandatory expenses, in addition to incapacity for investments, informed the Brazil Agency.

“We presented to Minister Haddad some alternatives that, in our understanding, would bring relief from a fiscal, financial and budgetary point of view to our states”, said the governor. One of the demands is the government’s support in the approval of Constitutional Amendment Proposal 51/2019, which increases from 21.5% to 26% the portion of the amounts collected from taxes on income and earnings of any nature and on industrialized products destined for the FPE.

The Finance Minister highlighted that the debt of the northeastern states is “very small” in relation to the debts of the southern and southeastern states. “The governors presented a natural claim, some even old ones, which were replaced in light of President Lula’s opening to discuss the federative pact”, reported Haddad.

“There is already a great understanding on the part of governors that there is no point in discovering one to cover the other. Creating a problem for the Union or creating a problem for the States is everything we don’t need”, added the minister.

The governor of Piauí, Rafael Fonteles (PT), argued that none of the proposed measures presented by the group would have an impact on the federal government’s accounts, which seeks zero deficit in 2024. “These are solutions that help the federation’s entities, especially the Northeast, without compromising the Union’s fiscal target in the short term”, said Fonteles. According to the governors, the Executive must schedule a meeting to discuss the demands within the next 30 days.

Also participating in the meeting were the governors of Bahia, Jerônimo Rodrigues (PT); from Maranhão, Carlos Brandão (PSB); from Ceará, Elmano de Freitas (PT); from Paraíba, João Azevêdo (PSB); from Alagoas Paulo Dantas (MDB); from Sergipe, Fábio Mitidieri (PSD); and the vice-governor of Pernambuco, Priscila Krause (Citizenship).