Treasury says there is no room for more help to states and municipalities

For 2016, the primary deficit target is up to R $ 163,9 billion in public accounts.
13/07/2016 12h54 - Updated 13/07/2016 12h54
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The government has no fiscal space to give more help to states and municipalities, he said today (13) Secretary of the National Treasury, Ana Paula Bishops, After meeting with members of the Finance Committee of the House to discuss and analyze the budget implementation of the Union, the performance of constitutional transfers the states of equity funds, Federal District and municipalities.

nevertheless, she said that the government is confident that the settlement program of Brazilian assets abroad will increase revenue, which will determine the allocation of federal funds to states and municipalities through constitutional holding funds.

Today, the interim president Michel Temer meets with representatives of the National Confederation of Municipalities (CNM). Asked about the threat of states in the Northeast and North and municipalities to enter with action in the Supreme Court to ask for equal treatment of the Union to members of the Federation, Ana Paula said the renegotiation project of state debts was based in accordance with all states. The agreement determines the extension of the payment of debts of the states with the Union.

fiscal target
On a fiscal target, the secretary of the Treasury said it will be fulfilled both this year and in 2017. For 2016, the primary deficit target is up to R $ 163,9 billion in public accounts. To reach this result the consolidated public sector, the expectation is that the federal government introduce primary deficit of R $ 170,496 billion and states and municipalities, a surplus of R $ 6,554 billion.

For 2017, in addition to the deficit of R $ 139 billion for the Union, the economic team set deficit target of R $ 3 billion for state and R $ 1,1 billion to states and municipalities. If they were taken into consideration the Union, states and municipalities, the negative target rises to R $ 143,1 billion. The primary deficit is the negative public accounts before payment of interest payments.

Public safes
The secretary said, still, it has no information as to allow the sale of debt market that the IRS has to get taxpayers parcelaram the payment of taxes. The information was published in today's edition (13) the newspaper O Estado de São Paulo. Through this operation – called securitization – the receivable is converted into securities that are sold at a discount to, like this, anticipate the inflow of funds in the government coffers.

Source: Agency Brazil

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