After Fernando Haddad, Minister of Finance, announced tax benefits for the South and Southeast regions, the Governor of Ceará, Elmano de Freitas, revealed that he will join other managers in Brasília to demand equality in debt management.
According to Elmano, it is incorrect for the Union to grant more advantages to states that have not fulfilled their commitments in recent years, especially when compared to others that have kept their accounts up to date. “The State of Ceará makes a great effort to keep its accounts balanced, we would have liked to have given much larger adjustments than we gave to our civil servants in previous years – we were not able to guarantee the State’s fiscal balance. Now, we therefore have to have a counterpart from the Union. I think it is right to help the states, but that it helps everyone”, said the Governor.
Elmano’s dissatisfaction refers to the federal compensation under construction with the South and Southeast, as the Union proposed a reduction in interest on the debts of entities that increase investments in Technical Secondary Education, as part of the Interest for Education Program. In theory, the reduction would be temporary, happening from 2025 to 2030. However, if enrollment targets are reached within six years, the states would have a permanent reduction in the interest rate.
In total, all Brazilian states owe R$740 billion in debt to the Union, the majority of which is owed to São Paulo, Rio de Janeiro, Rio Grande do Sul and Minas Gerais. All of these together account for 90% of the outstanding balance, amounting to R$660 billion.
