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The month of March ends with a positive balance for municipalities in relation to the Municipal Participation Fund (FPM). The credit from the last ten days of March, which falls into the cities’ accounts, is 25% higher than that from the same period in 2023: R$4.8 billion. If we look at the same portion of February this year, there was also growth in the Fund, 21%.
An increase that means relieving the public accounts of more than 5560 Brazilian municipalities and allowing the payment of bills on time, such as employee and supplier payroll. Mayor Antônio Valete, of Jussara, in Bahia — a municipality with 15 thousand inhabitants — says that both the municipality he manages, and hundreds of others in Bahia — survive exclusively on FPM.
“We depend a lot on the improvement in the economy, the improvement in revenue, the FPM is our money, it’s all we have. We have no other money — we only have the FPM.”
See on the map how much your municipality will receive from FPM
Economic scenario reflects an increase in transfers
With a discount of around 4% of inflation, the net increase compared to last year from the last transfer in March reaches 21%. Which, according to budget advisor Cesar Lima, shows that the poor result obtained in the second ten years of March was just “a point outside the curve”.
FPM has smaller transfers to cities, but the drop may be ‘one-off’ – explains expert
The drop in the basic interest rate to 10.75% per year, according to Lima, could also heat up the economy, improve revenue collection — and with it, FPM transfers.
“This interest rate — the Selic — mainly interferes with the purchase of goods with higher added value. This will make financing for real estate and vehicles cheaper — with greater added value. Over the next few months we will really feel the difference with an increase in consumption, also in FPM transfers”, predicts César.
Blocked municipalities
All Brazilian municipalities are entitled to the FPM, but not all receive the amounts. Anyone who has bureaucratic issues or debts with the Federal Revenue Service is prevented from receiving the funds until the issues are resolved.
See which municipalities are blocked from receiving federal resources until 3/26:
- JEREMOABO – BA
- SANTANA – BA
- PINDORETAMA – CE
- CAIAPONIA – GO
- GAMELEIRA DE GOIÁS – GO
- SÃO SIMÃO – GO
- DOM AQUINO – MT
- VILA BELA DA SANTÍSSIMA TRINDADE – MT
- BRAGANEY – PR
- CARAPEBUS – RJ
- RIO DAS FLORES – RJ
- SUMPHOUSE – RJ
- GUAMARÉ – RN
- SENATOR SALGADO FILHO – RS
- JAPARATUBA – SE
- MARUIM – SE
- NEÓPOLIS – SE
- PIRAMBU – SE
- ROSÁRIO DO CATETE – SE
- SÃO DOMINGOS – IF
- JANDIRA – SP
- TAQUARITINGA – SP
- ITAGUATINS – TO
Edition: Zildenor Dourado
Zildenor Dourado has a degree in Journalism and Literature/Portuguese from the University of Brasília. He is a specialist in Legislative Communication, from Unilegis, of the Federal Senate. He worked as a reporter and editor for the newspapers Tribuna da Bahia, A Tarde and Jornal de Brasília. in addition to several union press vehicles. He worked as a publicist for the Legislative Chamber of the Federal District, where he was a reporter, editor and head of the Publicity and Press Relations Section.
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