Hole in the states is greater than the informed, Treasury reveals

According to unpublished report said there are differences between the data sent by the states in relation to debt.
22/10/2016 13h34 - Updated 22/10/2016 13h34
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The fiscal deterioration in the states due to the increase of personnel expenses and credits increased in recent years is worse than reported by local governments. According to unpublished report released this week by the National Treasury, there are differences between the data sent by the states in relation to debt, the personnel expenses and social security deficit of local servers.

Published for the first time by the Ministry of Finance, Bulletin of Public Finances of Subnational loved is based on the Restructuring Program and Fiscal Adjustment (ON F), used by the Union to monitor the state's public accounts and authorize loans to local governments. The criteria Treasury disregard maneuvers used by governors to decrease personnel costs and falling within the limits set by the Fiscal Responsibility Law (LRF).

In relation to expenditure for the civil service, the Fiscal Responsibility Law establishes that the states and the Federal District can not commit more than 60% of net current revenue (RCL) with payment to active and inactive local servers in the Three Powers. The data reported by local governments, only two states were above this limit at the end of last year: Paraíba (61,86%) and Tocantins (63,04%).

However, when using the Treasury criteria, nine units of the Federation blew the roof in order to 2015: federal District (64,74%), Goiás (63,84%), Minas Gerais (78%), Mato Grosso do Sul (73,49%), Paraná (61,83%), Rio de Janeiro (62,84%) and Rio Grande do Sul (70,62%). By PAF parameters, the relationship is in 61,13% Tocantins and 64,44% in Paraiba.

According to the Treasury, the difference in accounting mainly due to the fact that most states do not agree spending on outsourced and only informs the net remuneration of servers, instead of raw numbers. The gap also stems from the fact that several of the Federation do not declare bonuses and benefits such as housing allowance paid to the judiciary servers, the Public Ministry and local Public Defenders.

During the renegotiation of the debt of states, the Ministry of Finance tried to include, the counterparts of governors, the change in spending statistics with staff, with the period of ten years for the states that burst ceiling back to the limit 60%. However, after civil servants pressures, the government backed down and dropped the demand. The bill pending in the Senate only a ban on adjustments to local civil service by 24 months after the sanction of the law, without the need to reframe the LRF.

Social Security deficit
The survey also found that states are underestimating the deficit of the social securities of local public servants. According to the Summary Reports of Budget Execution (COURIER), sent by state governments to the Treasury every two months, the loss of all units of the Federation was R $ 59,1 billion at the end of 2015. In Treasury bills, However, the hole reached R $ 77,1 billion.

The biggest difference is observed in Rio de Janeiro, who declared deficit of R $ 542,1 millions, against loss of R $ 10,8 billion calculated by the National Treasury. Other states that stand out are Minas Gerais (R$ 10,1 billion declared, against R $ 13,9 billion calculated by the Treasury), Rio Grande do Sul (R$ 7,6 billion declared, against R $ 9 billion calculated) and Paraná (R$ 3,2 billion declared, against R $ 4,3 billion calculated).

The Treasury did not explain the reason for the difference of R $ 20 billion in the deficit of state public social securities, but recommended more transparency, control of wage increases, Cutting commissioned positions and reforms to contain the leak. Initially, setting ceilings for pensions of state employees was in the counterparts required by the federal government to renegotiate the debt of states, but the requirement was also removed during the negotiations.

Source: Agency Brazil

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