07/19/2024 – 11:09
The governor of Rio Grande do Sul, Eduardo Leite (PSDB), raised the tone in the discussion about the renegotiation of the states’ debt during a speech at the inauguration of the new board of directors of Fiergs, on the evening of Thursday, the 18th. Leite gave a message to stop “taking” what belongs to the State, which does not receive the same benefits as other regions, such as the North, Northeast and Central-West, instruments that would be sufficient to generate wealth to pay off the debt.
“If you are not going to give us what you give to other regions, stop taking what is ours so that we can invest in our state and help Brazil even more. This is our message,” said the governor.
Leite gave a speech in which he highlighted the challenges that the state has faced recently, from the drought to the tragic rains, and stated that the debt issue, which is being discussed with the federal government, is “extremely challenging”. He said that there is criticism of the debt renegotiation project, because it benefits the debtor states to the detriment of the others, but the granting of benefits to the other regions is ignored.
“If they give us what they give to other regions of the country, such as the constitutional fund to finance industrial entrepreneurs in regions such as the North, Northeast and Central-West; if they give us the oil royalties that boost revenues in the Southeast; if they give us the tax benefits that the Manaus Free Trade Zone and tax benefits from other regions provide, then they don’t need to facilitate debt repayment. With these benefits that others receive, if they give us these instruments, we will generate enough wealth to pay this debt,” he said.
The government and states have been discussing a change in the indexer for regional governments’ debt for months, and the Finance Minister himself, Fernando Haddad, has already stated that it is necessary to review the correction, currently set at IPCA + 4%.
The government proposed a program to reduce this index, the Interest on Education, which provided for counterparts with investments in technical education with the amount saved in debt service. The proposal was not accepted by the states.
After months of impasse, the president of the Senate, Rodrigo Pacheco (PSD-MG), presented a bill that has as its main focus the delivery of assets to reduce the index, which may remain only at the IPCA. The proposal was also questioned by other states and the government has already indicated that the bill needs to be revised.
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