This measure seeks to face the crisis generated by the current pandemic of the new coronavirus and its impacts on the economy.
The president said this Monday afternoon (23) that the government will execute a R$ 85.8 billion plan to reinforce states and municipalities.
He disclosed the news through a social network, during a meeting with governors of the North and Northeast regions. According to the president, to implement the actions, two provisional measures will be issued to transfer resources to state and municipal health funds.
However, later on the same day, Waldery Rodrigues, special secretary of Finance at the Ministry of Economy, informed that the amount reaches R$ 88.2 billion.
The measures announced by the government are:
- Transfer of R$ 8 billion to health spending;
- Recomposition of participation funds of states and municipalities, in the amount of R$ 16 billion (insurance for drop in collection);
- Transfer of R$ 2 billion for spending on social assistance;
- Suspension of state debts with the Union (R$ 12.6 billion);
- Renegotiation of state and municipal debts with banks (R$ 9.6 billion);
- Credit facilitation operations, worth R$ 40 billion.
The solutions are temporary and will be valid during the emergency situation, according to the Government.
Only the suspension of maturity of the states' debt with the Union, according to the president, will guarantee the states R$ 12.6 billion more in cash to face the crisis.
He announced the measure the day after the Federal Supreme Court (STF) responded to a request from the government of São Paulo and authorized the state to stop paying installments of the debt it owes to the Union.
While the renegotiation of state and municipal debts with banks would represent another R$ 9.6 billion, and a “credit facility” would mean the value of R$ 40 billion. It was not informed how long these resources would be released.
The president did not provide further details on these measures.
