Acting Governor Submits Request for Extension of Rio’s Tax Recovery Agreement | Rio de Janeiro

Cláudio Castro, who is a deputy and is in office for the removal of Wilson Witzel (PSC) from the Superior Court of Justice, met with the minister at the ministry’s headquarters in Brasilia.

According to Castro, while the analysis of the request lasts (four to six months), the rules of the agreement signed by Rio remain in force.

“Rio today complied with the step requested by the Federal Court of Accounts: we delivered the renewal request and the information and now the deadline for them to analyze all this documentation begins. Meanwhile, Rio remains under this regime and within this period. Per STN manual [Secretaria do Tesouro Nacional]It should take between four and six months for the final decision to be made, ”he said after the meeting.

The state entered the tax recovery regime in 2017 and pledged to adopt measures to reduce public spending and increase revenues to try to achieve fiscal balance, that is, to get the accounts out of the red. In return, it stopped paying R $ 51 billion to the federal government until April of this year.

A precautionary measure (provisional decision) granted by the Minister of the Federal Court of Accounts (TCU) Bruno Dantas allowed Rio to remain in the Tax Recovery Regime until the Ministry of Economy evaluates the renewal.

According to information from the Rio de Janeiro government, the state has complied with the requirements established in the tax recovery regime. From September 2017 to June 2020, the state should have implemented measures with an impact of R $ 26.6 billion. The implemented measures saved R $ 21.2 billion, resulting in a difference of R $ 5.4 billion.

However, the government alleges that it implemented adjustment measures not foreseen in the tax recovery regime and that these measures generated additional savings of R $ 5.9 billion until June 2020. With this, Rio de Janeiro claims to have exceeded the target set in the regime at R $ 500 million.

According to Ana Flor’s blog, in the request sent to the Council for the Monitoring of the Tax Recovery Regime on Monday (31), Claudio de Castro said that the state’s permanence in the program is not a “mere election.”

He said the departure would lead to a further delay in the payment of public servants and “serious damage in the provision of public services to the population.”