Minister Dias Toffoli, of the Federal Supreme Court (STF), decided this Monday (22) extend for another six months the measures that maintain the state of Rio de Janeiro in the Union’s Fiscal Recovery Regime (RRF). 
With the decision, an injunction is maintained until June 2026 given previously by the minister who prevents the Union from imposing a fine of 30 percentage points for non-payment of state debt with the federal government.
However, the debt installments for next year must take into account amounts that were not paid in 2024 and 2025, added to the amount of R$4.9 billion, which was paid off by the state government in 2023.
The value must be corrected by the Broad National Consumer Price Index (IPCA).
Recovery
The Fiscal Recovery Regime, created by Complementary Law 159 of 2017, allows states in a situation of fiscal imbalance to have benefits, such as the relaxation of fiscal rules, the granting of credit operations and the possibility of suspending debt payment.
On the other hand, the Federation units must adopt institutional reforms that allow the restructuring of the fiscal balance, such as the approval of a spending ceiling, the creation of supplementary pensions and the equivalence of the rules of the Private Social Security Regime (RPPS), where applicable, to the rules for Union employees.
The state of Rio de Janeiro requested entry into the regime in 2017.
A new RRF was created by the Union in January 2021. Rio de Janeiro, unable to balance its accounts in the previous RRF, applied to join the new regime in May of that year, but its plan was only approved in June 2023
With the new plan, the fiscal recovery regime will last until 2031. Rio de Janeiro will have 30 years to pay off its debts with the Union.
