This measure seeks to address the crisis generated by the current pandemic of the new coronavirus and its impacts on the economy.
The president said on Monday afternoon (23) that the government will execute a R$85.8 billion plan to reinforce states and municipalities.
He released the news via social media during a meeting with governors from the North and Northeast regions. According to the president, two provisional measures will be issued to implement the actions to transfer resources to state and municipal health funds.
However, later the same day, Waldery Rodrigues, special secretary of Finance at the Ministry of Economy, reported that the amount reached R$$ 88.2 billion.
The measures announced by the government are:
- Transfer of R$8 billion for health spending;
- Recomposition of state and municipal participation funds, in the amount of R$16 billion (insurance against a drop in revenue);
- Transfer of R$2 billion for social assistance spending;
- Suspension of states' debts with the Union (R$ 12.6 billion);
- Renegotiation of state and municipal debts with banks (R$9.6 billion);
- Credit facilitation operations, worth R$40 billion.
The solutions are temporary and will be valid during the emergency situation, according to the Government.
Only the suspension of the maturity of the states' debt with the Union, according to the president, will guarantee the states R$ 12.6 billion more in cash to face the crisis.
He announced the measure the day after the Federal Supreme Court (STF) responded to a request from the São Paulo government and authorized the state to stop paying installments of the debt it owes to the Union.
While the renegotiation of state and municipal debts with banks would represent another R$1.4 billion, and a “credit facilitation” would mean the amount of R$1.4 billion. It was not reported how long it would take for these resources to be released.
The president did not give further details about these measures.