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From Correio Braziliense:
The government will send the leaders of the House and Senate parties a proposal for an agreement to transfer up to R $ 40 billion in direct resources to the states and municipalities facing Covid-19. In exchange, the governor and mayor who receive the federal money will have to suspend the salary adjustments of their officials for two years.
The government’s proposal is to replace the text of the emergency aid project for states and municipalities that is being processed in the Chamber or to present a new text through an allied senator. However, the edition of a provisional measure (MP) with the terms of the agreement with the leaders is not ruled out. The initial proposal is R $ 32 billion, with room to rise to R $ 40 billion, according to information from Agência Estado.
The project in the Chamber, sponsored by the President of the Chamber, Rodrigo Maia (DEM-RJ), has the potential to affect public coffers up to R $ 222 billion, depending on its extent, according to calculations by the Secretary of the National Treasury, Mansueto. Almeida
Economy Minister Paulo Guedes has already warned that he does not accept the expansion of the debt space of the states. The Minister abandoned the Mansueto Plan, which provided financial aid to regional governments that were having difficulty paying officials and suppliers, but that required structural adjustment adjustments to public accounts, such as a reduction in personnel costs.
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