After two consecutive falls, HGS is growing again; City halls share R$4.8 billion on Tuesday(30)

After two consecutive falls, the Municipal Participation Fund (FPM) is growing again. Next Tuesday (30), city halls will share around R$4.88 billion, the amount referring to the third installment of April. The amount represents a real increase — above inflation — of 7.4%, compared to the third installment of April 2023.

In the two transfers this month, the amount received by the municipalities was lower than that recorded in the same transfers last year. In the first decade, the FPM registered a drop of 0.5%, while, in the second, the drop reached almost 6%.

Cesar Lima, public budget specialist, comments on the result. “It’s good news to break this downward trend. This is very good for municipalities — a significant real increase of more than 7%. We’ll have to watch a little further to see if (the declines) really were a something at the moment”, he projects.

Tax justice

For Roberto Justus, mayor of Guaratuba — a city on the coast of Paraná —, the FPM is essential not only for balancing the accounts of city halls, especially small ones, but also for bringing fiscal justice among the federation’s entities.

“I think it had to be much bigger, because the Union and the states have, in recent years, outsourced those public services that are their responsibility into the hands of the municipalities. This is very unfair, because we get scolded, there are to solve. And the transfer doesn’t keep up, especially when we talk about health and education”, he criticizes.

On Tuesday, the municipality of around 42 thousand inhabitants receives around R$1.3 million from the FPM. Justus says that transfers from the fund represent Guaratuba’s main source of income. He highlights the importance of this for the coffers of the municipalities of Paraná.

“The importance is great and I can say that, knowing the reality of the other municipalities in Paraná, for them too. The vast majority of municipalities in Paraná depend on the transfer to pay their payroll, for example. And I’m not saying in investment, because my investment capacity is very small. If I want to spend R$10 million, I will need to finance it. keep it,” he says.

FPM has a slight decline after three consecutive increases, but the 2024 balance is still positive

With the second consecutive drop, FPM transfers around R$ 1.36 billion to municipalities this Friday (19)

Fundeb

The FPM transfers 20% of the resources to the Fund for Maintenance and Development of Basic Education and Valorization of Education Professionals (Fundeb), which this Friday corresponds to just over R$1.2 million.

City halls blocked

According to the Integrated Financial Administration System (Siafi), until last Wednesday (24) 13 municipalities were prevented from receiving the FPM.

Check if your city is on the list.

Brejões (BA)

Laje (BA)

Meekness (BA)

Jordan (MG)

Antônio João (MS)

Miranda (MS)

Barra do Bugres (MT)

Campos de Júlio (MT)

Dom Aquino (MT)

Rio Branco (MT)

Rondonópolis (MT)

São José do Povo (MT)

Braganey (PR)

Among the main reasons that prevent a municipality from receiving the FPM are the lack of payment of the contribution to the Public Servant Heritage Training Program (Pasep); debts with the INSS; debts with active registration by the Attorney General’s Office of the National Treasury (PGFN); and lack of accountability in the Public Health Budget Information System (Siops).

To unblock the transfer, the public manager must identify the body that ordered the freeze. Then, you must find out the reason and rectify the situation. It is worth remembering that the city hall does not lose blocked resources permanently. They are only blocked until the pending issues are resolved.

By Brasil 61