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The National Confederation of Municipalities (CNM) revealed that 45% of municipalities in Mato Grosso ended the year 2023 facing financial difficulties, with their accounts in the “red”. This situation indicates that these city halls were unable to cover all expenses for the year, particularly payroll expenses.
Despite this worrying scenario in almost half of the state’s municipalities, the situation does not reflect the general panorama in Mato Grosso. Surprisingly, the sum of the accounts of all city halls showed a significant surplus of R$396.7 million. This is due to the fact that 55% of municipalities did not face problems balancing their accounts and making all necessary payments. This positive financial performance places Mato Grosso as the fourth best state in the Brazilian ranking of municipal surplus, behind only Paraná, Rio Grande do Sul and Paraíba.
The CNM report points to a 13.2% increase in personnel expenses in 2023, driven both by salary adjustments and the hiring of new employees, practices that had been suspended during the pandemic. This increase in payroll expenses is one of the main factors that contributed to the deficit observed in municipalities with financial difficulties.
The CNM document highlights that the worsening of municipal public accounts is worrying, especially considering the high primary deficit and the increase in expenses that were not accompanied by an equivalent growth in revenues. Furthermore, the greater commitment of Net Current Revenue (RCL) to personnel expenses signals a challenging year 2024 for Brazilian city halls.
This complex financial scenario in the municipalities of Mato Grosso reflects the difficulties that many municipal administrations face throughout Brazil, challenged to balance the provision of public services with the efficient management of their financial resources.
