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After four years paying servers arrears, states in a delicate fiscal situation expect to regularize payroll this year, but the crisis stemming from the COVID–19 You must prevent workers from receiving their pay on time.
Secretaries of the Treasury Minas Gerais, River Big From the south and Rio de Janeiro they already claim that even federal aid will not be enough to enable them to meet payroll and, after the most critical phase of the pandemic, the tendency of these states’ fiscal situation to deteriorate further.
In Rio Grande do Sul, for example, 50 months ago Payments they are not made until the last day of the month, as required by law, in addition to being staggered: they first receive those with the lowest incomes.
The servers even waited 45 days for money casse in your beadsBut earlier this year, that period had been reduced to 13 days. In April, however, it returned to 30 days and, for this month, there are no forecasts. “There is no way to guarantee a specific date. We will not pay on time,” says Finance Secretary Marco Aurelio Cardoso.
With the reduction of economic activities in March, the drop in ICMS collection in the State was 14% last month. In April, however, the disruption to trade was greater, which should lead to a 30% decrease in collections this month.
The gacho government should receive R $ 2.2 billion, in four months, from the federal government, an amount that is part of the federal program to face the coronavirus. Of this total, R $ 1.95 billion, or R $ 487 million per month, can be spent in areas that are not related to health. The problem is that only the state payroll consumes R $ 1.4 billion, equivalent to 47% of the collection with ICMS in normal times.
“If ICMS falls 22.5% during the pandemic, aid from the federal government will count, but the projection is that this fall will be 30%,” says Cardoso. “We have been clamoring for financial aid for 50 days. After that time, we see aid in a positive way, but what we are going to receive does not cover the drop in income. In any case, the important thing is that the resources arrive soon” he adds.
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Unlike Rio Grande do Sul, Rio de Janeiro had already managed to regularize payments. After constant delays in 2016 and 2017, the State was able to pay the servers by joining the federal government’s tax recovery regime. He also counted in favor of the recovery of the oil sector, which guarantees additional income to the Fluminense government due to the payment of royalties.
Last year, Rio de Janeiro celebrated the fact that it paid for server number 13 in November and, on some occasions, the payment of the entire payroll until the fifth business day of the month; the law allows it until the 10th.
“We started 2020 by paying wages upfront. Now all financial planning went downhill. The budget became a piece of fiction,” says Finance Secretary Luiz Claudio Rodrigues de Carvalho.
The secretary projects a 30% drop in earnings this month and a 23% drop throughout the year. On the other hand, the State should receive R $ 2 billion from the federal government, which can be used to pay employees and suppliers. “According to our calculations, even with federal aid, there will be a lack of R $ 8.1 billion (12% of expected revenue) to close the accounts by 2020. We will have to start choosing what we are going to pay. The servers will be a priority. ” Then the suppliers, “says Carvalho.
According to him, the salary of public officials will be threatened from September. “We have to find a solution,” he adds, who is waiting for other federal aid to pay the bills.
Meanwhile, the state is trying to cut spending and postpone spending. The servers, who had been receiving 50% of the thirteenth month of birth, have already seen the measure suspended. An indication that, as happened in 2016 and 2017, I will again have to wait months to receive the extra salary.
