THE government of Rio de Janeiro sanctioned a law that authorizes adherence to the Program for Full Payment of State Debts (Advertisement).
The text was published in the Official Gazette this Friday (26) and determines that the Executive Branch requests the closure of the Tax Recovery Regime (RRF) to enter the new model.
Propag was established through Complementary Law No. 212/2025, sanctioned on January 13, 2025. The program is regulated by Decree No. 12,433, of April 14, 2025.
THE program allows states to reconcile the payment of their debts with the maintenance of public services and investments in areas such as Health, Education and Security.
In the RRF, the debt is adjusted by the IPCA index + 4% per year. In the new program, the update may be IPCA + 0%, 1% or 2%, depending on the agreed conditions. In contrast, the States must pay part of the debts and comply with additional fiscal and financial rules.
The sanctioned law authorizes the use of resources from the National Regional Development Fund (FNDR) to reduce part of the debt at the time of accession. This mechanism made Rio de Janeiro’s entry into the program viable after the overturning of part of the presidential vetoes on the law that established Propag.
The text also establishes a system for limiting the growth of expenses, which will be based on the variation in the IPCA, plus percentages that can reach 70%, depending on the performance of state revenue.
Currently, the debt of the State of Rio de Janeiro amounts to R$225 billion, of which R$193 billion is owed to the Union, R$28 billion in contracts guaranteed by the Union and R$4 billion in installments.
