Jairo Jorge launches actions to reduce debt of R$ 196 million on his return to Canoas City Hall
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Jairo Jorge’s (PSD) first mission upon his return to Canoas City Hall will be to reduce the debt of R$ 196.45 million that the Municipal Executive has with suppliers. After being removed from office for about a year on suspicion of corruption, in a process that is now running in federal court, the mayor launched two programs to rebalance the municipality’s expenses and revenues, after losses in ICMS collection.
Back in the city hall for just 20 days, Jairo predicts that the deficit could still grow. “We still have a deficit in the range of R$ 385 million. The budget has been compressed. A part of this deficit is already appearing now and we are going to take measures to try to reduce it. all the mapping”, declared the mayor, in a press conference at the headquarters of the Executive.
The current debt stems from Expenses from Previous Years (DEA), around R$92.7 million, settlements estimated at R$53.9 million and expenses in the order of R$22.8 million unpaid to hospitals in Canoes.
The total amount “is one collection per month”, said Jairo. “And exactly this amount, around R$ 160 million, was what we lost in ICMS. This number is due to the absence of reduction measures. If, when the ICMS began to fall, we had taken containment measures , maybe we would not reach this deficit”, he pointed out.
The debts, in general, are with an average delay of 3 to 4 months. There are also several delays in payments for the last quarter of 2022, according to the city hall itself.
Canoas revenues were reduced by 14.98%, not counting inflation, between the first quarter of 2022 and the same period of this year. Last year, the collection for the months of January, February and March was R$ 537.1 million. In the first quarter of 2023, the collection was BRL 457.5 million – a drop of almost BRL 80 million in three months.
To contain the deficit, the city hall launched two programs, with the aim of containing expenses and generating more revenue for the municipal coffers. To increase revenue, one of the projects will focus on combating default, with discounts or even forgiveness of fines and interest on arrears, and on the installment of debts for large debtors.
In expenses, the city government must cut common expenses, such as reducing car rentals, number of drivers, fuel expenses, suspension of new property leases for 180 days, renovating its own buildings, exchanging areas, reviewing idle leases and energy savings and water.
“I believe that in 6 months we will breathe better, but (the fiscal recovery) is something that should last throughout the year. It is premature to say that we will solve this deficit in six months”, predicts Jairo.
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