Governors 14 states threaten to enact financial calamity

According to the Governors, the goal is that 14 states loosen a joint note next week to alert the federal government.
14/09/2016 06h48 - Updated 14/09/2016 15h43
Photo: reproduction

Governors of at least 14 Northern states,, the Northeast and the Midwest threatened to enact financial calamity situation, if the federal government does not give the help of R $ 7 billion to replace losses with federal transfers. For about two and a half hours, they met with the Minister of Finance, Henrique Meirelles, and pushed for the granting of aid to compensate for falling revenues.

According to the Governors, the goal is that 14 states loosen a joint note next week to alert the federal government. If the aid is not granted, they intend to declare a state of financial calamity, like Rio de Janeiro did in June. From northeast, only Ceará and Maranhão would not take the measure.

The proposal presented today, governors asked the anticipation of R $ 7 billion repatriation of funds (payment of taxes on funds held abroad) who will enter the federal coffers to the end of October. Originally, the proposed state aid to be equivalent to the total decrease of R $ 14 billion in EU transfers to the Participation Fund of the States 2016 compared to last year.

In addition to the North and Northeast governors, governors of the Midwest and Parana asked the payment of R $ 1,9 billion that the federal government owes the fund that guarantees the replacement of tax losses Kandir Law, exempting exports of agricultural products Tax on Circulation of Goods and Services (ICMS). Every year, states need to negotiate with the federal government to pay compensation.

The meeting brought together governors of the Federal District and 16 States: Acre, Amapá, Amazon, Bahia, Ceará, Goiás, Mato Grosso, Paraíba, Pernambuco, Paraná, Piauí, Rio de Janeiro, large northern river, Roraima, Sergipe and Tocantins. According to the governor of Piaui, Wellington Dias, Rio governor, Luiz Fernando Pezão, attended the meeting in solidarity with the North and Northeast states. In June, the state received financial aid from R $ 2,9 billion from the Union after declaring a state of financial calamity.

According to Dias, the federal government is indebted to the Northern governments and the Northeast, what, even with low level of indebtedness, They entered the agreement to renegotiate the debt of the states with the Union. "The economy of my state is growing. Revenue from ICMS [Piaui] is increasing, what is falling are the transfers from the State Participation Fund [Union transfers]. The money shortage threatens public health, maintaining the chains. The federal aid must be immediate ", said.

According to the governor of Paraiba, Ricardo Coutinho, Meirelles said, no time, the Union is unable to grant the aid to the states. According to him, the minister said that the economic team needs to know the amount that will come with the repatriation to see if can meet the primary deficit target - negative result without considering the public debt - R $ 170,5 billion to 2016.

"The whole problem is that, in this country, who did the homework, into debt less, cut spending, before a three-year crisis in which GDP [Gross Domestic Product] dropped down 7%, the greatest economic depression this country has ever seen, you see today on the condition that all the work done is in danger of being lost for lack of aid that is needed ", he warned Coutinho.

Source: Agency Brazil

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