The focus at this time is to serve salaried workers, beneficiaries of social programs, rural producers and companies
The Minister of Finance, Fernando Haddad, announced this Thursday (May 9, 2024) a package of new aid measures for Rio Grande do Sul totaling R$50.9 billion. The resources will serve 3.5 million people affected by the heavy rains and floods that are ravaging the State.
The focus of this stage is to serve salaried workers, beneficiaries of social programs, rural producers, companies and municipalities. A total of 3 provisional measures with part of this aid will be sent to the National Congress this Thursday. According to Haddad, the primary impact of the measures will be R$7.7 billion.
The announcement was made in a ceremony at Palácio do Planalto with the presence of President Luiz Inácio Lula da Silva (PT), the presidents of the Chamber, Arthur Lira (PP-AL), and the STF (Supreme Federal Court), Luís Roberto Barroso, representatives of public banks and government ministers.
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According to Haddad, negotiations on the suspension of Rio Grande do Sul’s debt with the Union continue and should be concluded at the beginning of next week. The minister indicated that there will be authorization for the State to stop paying installments during the period during which the reconstruction of the damage caused by the rains takes place.
Among the measures announced are the anticipation of the salary bonus payment schedule, the payment of Bolsa Família and gas aid, the release of 2 additional installments of unemployment insurance, priority in the refund of Income Tax to around 1.6 million gauchos until June, and contributions to grant credit to companies. Here is the full text (950 kB – PDF) of the presentation given by Haddad at the event.
“It really opens the way so that, in each specific case, we can provide practically tailored assistance to the families or companies affected. […] The value seems satisfactory to us at this moment”, he said.
The minister highlighted that the contribution of resources will not harm the programs in force in the ministries for other states in the country. “Serving Rio Grande do Sul will not harm ongoing programs. Everyone will have normal budget execution”, he said.
Read below the main proposals presented by the government:
SALARY ADDITION
The idea is to bring forward the payment of the 2024 benefit for residents of the State. This way, they will receive the money in May. Haddad says that 705 thousand workers can benefit. The fiscal impact is R$758 million.
UNEMPLOYMENT INSURANCE
The Treasury says it will release two installments of the fund for the unemployed who already received the money before the calamity decree. It would affect 140 thousand people with an impact of R$495 million.
INCOME TAX REFUND
The idea is to give priority so that declarants in Rio Grande do Sul have access to payment. It should be carried out in June, with an impact of R$ 1 billion.
FAMILY SCHOLARSHIP AND GAS AID
Both payments for the month of May will be advanced. It is expected that 583 thousand families will have access. The impact is R$380 million.
FUNDS FOR STATES AND MUNICIPALITIES
The government wants to release R$200 million contribution to structuring funds projects starting in June. The money will come from public banks – it was not said which ones. The presentation says that the objective is “support and finance a network of structures of infrastructure reconstruction and economic rebalancing projects”.
ACCELERATE CREDIT
The Treasury talks about building a “Task force” for “accelerate credit analysis with Union approval for municipalities”. 14 municipalities will benefit from loan operations in May. The impact is R$ 1.8 billion.
R$ 4.5 BI TO PRONAMPE
A contribution of R$4.5 billion of the FGO (Operations Guarantee Fund) to reach R$30 billion leverage through Pronampe (National Support Program for Micro and Small Businesses). It should benefit small businesses from May onwards.
DISCOUNT OF R$ 1 BI IN INTEREST
Still through Pronampe, the government wants to give more R$ 1 billion discount on interest on credits acquired through the program. With the contribution, it is expected that the total discount, including what had already been granted, will reach R$2.5 billion.
EXTENSION OF THE NATIONAL SIMPLES
The collection of taxes under the tax regime will be suspended for at least 3 months. This includes MEIs (individual microentrepreneurs). The impact is R$4.8 billion. It should benefit 203 thousand companies.
FARMERS
Entrepreneurs in this sector will not need to present a negative debt certificate for contracts and credit renegotiations with public banks. It will be valid from May to November.
R$ 1 BI DISCOUNT ON RURAL INTEREST
The Treasury wants to offer the discount to small rural producers registered with Pronaf (National Program for Strengthening Family Agriculture) and Pronamp (National Support Program for Medium-sized Rural Producers).
Here are the deadline details:
- Pronamp – from May onwards in financing for up to 96 months. Interest is 4% nominal per year. There is a grace period of up to 36 months;
- Pronaf: from May on financing for up to 120 months. The rate is 0% nominal per year. You will be charged for the return of the principal without correction. There is a grace period of up to 36 months.
