The financial crisis in the main segments of the public sector is gigantic, with emphasis, in the case of the States, on the Rio Grande do Sul, victim, more than others, of administrations (not necessarily the current one) that have not been treating the matter in the best way. It was in this context that we have just witnessed an unprecedented climate explosion in RS, whose population and its own administration are in a virtual state of shock with everything that has happened in recent days. It is in this context that the valiant RS, today practically submerged in the avalanche of water and debris of all types that have been collapsing on it mercilessly, needs the support of all its residents, but mainly of the country’s political and economic authorities such as as a whole, which still seem inert in relation to the entire unfavorable situation that the sub-regions and their respective administrations face.
Supporting the region administratively and financially is the least that the competent authorities should be doing, as there is no way to hesitate in this noble mission. But before the impact of climate catastrophes like the current one, the “x” of the fiscal issue throughout the country that requires urgent measures from the authorities is twofold: attacking the gigantic social security problem to put things in order in the medium term, and placing emphasis on municipal segment, the most needy of all when it comes to adjustment measures. And it is exactly in Rio Grande do Sul that the problems of these critical areas, pension and municipalities that are financially unbalanced, with the State literally underwater, are showing themselves with greater intensity. In other words, for the people of Rio Grande do Sul, there is no shortage of problems that are difficult to solve.
Many cities in Rio Grande do Sul have social security problems and will need to rebuild; In the photo, a man goes through floods in Porto Alegre Photograph: Carlos Macedo / AP
In this context, I have denounced and will repeat some relevant points that have occurred in the financial management of municipalities (notably those in Rio Grande do Sul): soaring social security expenses; high salary adjustments for teachers; assumption of increasingly greater responsibilities in the social area, through pressure from the government and the National Congress, and with less financial coverage, as in the cases of Merenda Escolar and Mais Médicos. Hence there is enormous internal pressure for all entities to stop paying at least three things: contributions to the General Regime, Precatório and expenses linked to the Own Regime, totaling up to now R$500 billion in arrears accumulated in all municipalities. And also the municipal eagerness to reduce the employer tax rate under the General Regime, but without support from the Union.
