the federal Government and states announced on Tuesday (22) a “national pact” for balancing the public accounts, which must be completed by the beginning of next week. The announcement was made after a meeting at the Planalto Palace, in Brasilia, with the participation of the president Michel Temer, the ministers of the economic area and the governors and that was scheduled to discuss the financial crisis in the states.
According to the minister of Finance, Henrique Meirelles, by the agreement, the federal government agrees to give the states a larger share of the resources raised with the so-called “repatriation”. On the other hand, the governors commit to making a strong adjustment in their accounts, similar to that proposed by the government itself to Fear, including the increase of social security contributions paid by public servants.
The government raised R$ 46,8 billion with the recovery of Income Tax and fines from taxpayers that joined the “repatriation” program, which gave incentives for brazilian regularizassem assets held abroad and which had not been declared to the Federal Revenue. The principle, states would be R$ 4 billion of that total – a portion of the proceeds only with the GO.
the Governors, however, required also a portion of the fines. In the face of resistance from the federal government, have filed action in the Supreme Federal Court (STF). At the beginning of November, the minister of the Supreme, Rose Weber, has determined that the government would make the legal deposit of a portion of the proceeds with the “repatriation”, until the request of the states were judged.
With the agreement of the government to Fear in sharing the fine, the states will receive over R$ 5 billion. According to Meirelles, the idea is that the values to be paid yet this year, but this is not yet confirmed.
The minister also said that the municipalities, which were also part of the GO raised, will not come in the share of the fine. “At the moment there is no agreement. Prevails not distribution [of resources] for a while,” he said.
The pact also provides that the governors will withdraw from the SUPREME court’s actions in requiring part of the fine levied with the “repatriation.”
financial Crisis
Meirelles admitted that the$ 5 billion more are not sufficient to resolve the financial problems of the states, aggravated by the economic crisis that reduced the production and consumption in the country and, consequently, the collection of taxes.
However, the minister said, the transfer of these extra features “makes the transition to the new regime of fiscal austerity". According to him, the funds will allow many states to solve short-term problems.
By the covenant, to have access to extra resources the states should support the SGP that creates a ceiling to public spending and to promote a reform of the Social Welfare at the state level.
"to The extent that it is presented in Congress and approved, it becomes an obligation of states," he said.
The states also may not perform the hiring of servers, or to give wage increases, for the next two years, and is expected to reduce by 20% the expenses with positions of commissioned, temporary, and gratuities. There are still other requirements. the See all of the points below
This year, within the agreement that allowed the renegotiation of the debts of the states with the Union, the governors had already committed to adopt measures of fiscal adjustment, among them the application of the ceiling for spending. During the course of the project in the Camera, however, this requirement was dropped.
The minister of Finance reported that various measures will be discussed for the fiscal adjustment of the states, beginning with Rio de Janeiro, which passes by a strong fiscal crisis, and has already announced a package of austerity – by cutting social programs and the wages of servers, among others.
"we Will study the situation in each state. In states with a most serious situation, measures will be taken to more comprehensive. Some even have already announced. We will make individual meetings with some governors from tomorrow [Wednesday, 23], with the states with the most serious situation, to adopt stronger measures, substantially stronger," he said.
See the points of the “pact” between the federal government and the states
The agreement provides that the government will review the states a portion extra$ 5 billion of the proceeds with the process of “repatriation”. On the other hand, the states undertake to make a series of adjustments aimed to restore balance in their accounts (read to the end of this report a note issued after the meeting).
Among the measures that states should adopt are:
>> Support to the project that creates a ceiling to the increase in public spending, pending in Congress, and application of this policy also to the accounts state;
>> Reduce by 20% in relation to 2015, the expenditure positions of commissioned, temporary, and gratuities;
>> the Submission to Congress of amendments to the reform of the pension plan to state in the terms of the proposal provided to the INSS, and that will still be forwarded to the Legislature;
>> the Governors should support the draft law that regulates the ceiling, regulatory framework of public service.
>> the Resumption of exchanges abandoned by the states, as a seal to the increase of salaries of employees in public for two years, except those provided for by law or the Constitution, and seal the creation of new positions. This will be incorporated into the design of the ceiling in the Federal Senate.
Note
Read below the full text of the statement released after the meeting between the governors, the president Michel Temer, the ministers and the presidents of Chamber and Senate.
Note to the press
Meeting today in Brasilia, governors of states, the president of the Republic, Michel Temer, the ministers of Finance, Henrique Meirelles, and the Planning, Dyogo Oliveira, as well as the presidents of the Chamber of Deputies, Rodrigo Maia, and of the Federal Senate, Renan Calheiros, have decided to constitute a great national pact by the balance of public accounts that comprises:
1. Absolute unity of action of the Union and of the states in the fiscal adjustment proposed by the federal government, as well as those measures which have already been presented and others that will be proposed on the reform of the pension plan;
2. The governors formalizarão, with required number of support of federal deputies, an amendment to the PEC of the reform of the Pension to be submitted by the Union with a view to appear in the text of the liabilities applicable by states and the Federal District;
3. From this Wednesday (23/11), the secretaries of Finance shall prepare, with the secretariat of the National Treasury, the proposal of adjustment of the states to be presented next week by a group of governors representing the regions, the minister of Finance, to detail the proposals limiting spending in the states; and
4. The commitment to cutting spending was also agreed unanimously between the governments of the states and the Union;
5. In the face of these measures, will be formatted instruments legal necessary for the agreement to be formulated before the Supreme Federal Court;
6. All of these measures seek to build a favorable environment for the economic recovery and to the return of the development in the shortest possible time.
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