The Attorney General’s Office (AGU) sent, this Tuesday (30), to the Federal Supreme Court (STF) an opinion against the new request from the government of Minas Gerais to extend the deadline for joining the federal government’s tax recovery regime. 
On July 19, Justice Edson Fachin decided to extend the deadline for the state to join the regime until tomorrow (1st). Following the decision, the state prosecutor’s office requested a new extension of the deadline until August 28, when the Court is expected to judge Fachin’s individual decision in plenary.
In its opinion, the AGU argues that the government must approve counterpart measures in the state legislature to join the regime. In addition, the body argues that the installments of the debt with the Union should be paid normally.
“The Union understands that it is essential for the state of Minas Gerais to signal its commitment to fiscal rebalancing, with, at the very least, the resumption of payment of its debt service, even if in the beneficial model already discussed by this central, consisting of the return to payment as if it were under the Fiscal Recovery Regime, so that it is possible to consider the possible opening of conciliation proceedings”, stated the AGU.
Minas Gerais’ debt to the federal government is around R$165 billion.
In the federal legislature, the president of the Senate, Rodrigo Pacheco (PSD-MG), presented a bill last month to try to resolve the states’ debt with the Union, which provides for payment in installments over 30 years. The debt of all states amounts to more than R$760 billion. Minas Gerais, Rio de Janeiro, Rio Grande do Sul and São Paulo account for almost 90% of this amount.
