Among the more than 600 proposals that appeared on Alerj’s agenda this Thursday, one will have a strong impact on the state treasury. During the last session of the year, deputies approved the bill that authorizes the Executive to join the State Debt Payment Program (Propag), a mechanism for refinancing debts with the Union. According to parliamentarians’ calculations, this benefit could reduce the 18.9 billion reais deficit forecast in the budget by up to 8 billion reais. It will now be up to Palácio Guanabara to rush to submit the formal application for membership on time, as the deadline is the 31st.
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MPs stressed that approval of the project represents only the first step in a long negotiation process with the National Treasury and the Ministry of Finance.
— The state now has the legislative authority to seek formal membership. From then on begins a negotiation which is not rapid and which will not produce immediate effects – explained deputy André Corrêa (PP), president of the budget committee of the Chamber. — Propaganda is fundamental to keeping the State alive, but it does not solve everything.
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Corrêa recalled that Rio can currently only remain in operation thanks to an injunction issued by Minister Dias Toffoli, of the Federal Supreme Court, which limits the payment of the debt to the Union to 4.9 billion reais per year. This court decision is only valid until the end of this year.
During the vote, the deputies approved an amendment from the dean of the Chamber, deputy Luiz Paulo (PSD), which obliges the Executive to transmit to Alerj a revision of the budget within 30 days following the possible implementation of Propag.
— Stopping paying interest next year is the only possible respite for the state at the moment. If we keep the budget as it is, there is no way out — said Luiz Paulo.
After numerous discussions, deputies also approved the 2026 budget, with a deficit of 18.9 billion reais. According to the approved text, estimated net revenues are BRL 107.6 billion, while expenses are expected to reach BRL 126.5 billion. With Propag, expenses will drop.
— This is one of the worst budgets I have ever voted for here in Parliament. I don’t remember a budget with a hole of 19 billion reais, after selling Cedae and putting 17 billion reais in cash — said Luiz Paulo.
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The Executive also managed to have the 2022 and 2023 accounts approved. The score was 48 votes for, 13 against and one abstention.
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