The state of Minas Gerais may start negotiations with the National Treasury to join the tax recovery regime (RRF). The Official Gazette of the Union published today (7th) an order from the Secretary of the National Treasury, Paulo Valle, considering the state qualified to enter the program.
Now, the Minas Gerais government will be able to prepare a fiscal adjustment proposal to be discussed with the National Treasury. The RRF will allow the installment of approximately R$30 billion of the debt with the Union, whose payment has been suspended since 2018 by an injunction from the Federal Supreme Court (STF).
The accession of Minas to the RRF was only possible because Minister Nunes Marques, of the Federal Supreme Court (STF) granted, on the last day 1st, a decision that allows the state government to request inclusion in the program without the need for approval of a law by the Minas Gerais Legislative Assembly. For years, the spending adjustment plan has been stalled in the local legislature because deputies resist approving aspects of the proposal, such as a privatization plan for state-owned mining companies.
Other states
Currently, Rio de Janeiro and Goiás are part of the RRF. Goiás is in the program since December last year. O Rio de Janeiro is in the RRF since 2017 and, last month, it closed an agreement with the Union to continue in the special regime, with the promise of rebalancing the local accounts over the next ten years.
Last month, the federal government approved the fiscal recovery of Rio Grande do Sul. The plan allows the state to repay, in a staggered manner, the debt of the Union, whose payment had been suspended by an injunction from the Federal Supreme Court since July 2017. and reforms to reduce local spending.
