R$900 million. This is the amount that the state of Santa Catarina has received, since last year, from the federal government, intended to compensate for revenue losses due to the reduction in ICMS on fuels, electricity, communications and public transport. These values are part of an agreement signed between the Union and the States the previous year.
According to the terms established with the then Minister of Finance, Fernando Haddad, the state government would receive R$298.75 million in 2023, R$597.5 million in 2024 and another R$298.75 million in 2025, totaling R$ $1.19 billion. However, the amounts allocated for this year have already been paid in 2023. This compensation was essential for the State to be able to close its accounts with a surplus.
The loss of revenue from ICMS is the result of Complementary Law 194/22, approved by Congress and sanctioned by former president Jair Bolsonaro in 2022, which established ICMS at 17% in fuel operations. However, Bolsonaro vetoed compensation to states and municipalities that were unable to maintain the constitutional floors for health, education and Fundeb due to loss of revenue.
Tags: receives R900 million federal government compensate revenue losses OCP News
