Debt in public accounts is a challenge for mayors who take office in 2025
Amid this scenario and with new mayors taking over from January 2025, a challenge is being launched for local managers, according to public budget specialist, Cesar Lima. For him, cleaning up the public sector is one of the measures that needs to be taken.
“The deficit generally presents itself in the form of an increase in mandatory expenses, especially in election years, with personnel expenses. Of course there are limitations to this, according to the law, but most likely what happens is an inflation of the public sector in order to obtain electoral leads for mayors who are trying to be re-elected. Whoever enters, or even those who are re-elected, the first thing they will do will be to clean up the public sector in order to get their investment capacity back”, he considers.
Tax Reform: elected mayors start 2025 with the challenges of the transition
In the opinion of the professor of Economic Sciences at Universidade Presbiteriana Mackenzie, Vladimir Maciel, the first year in office for elected managers is usually challenging.
“The mayors will have little room for maneuver to fulfill campaign promises. The first two years of their term will involve fiscal adjustment, if they want to deliver any work towards the end of the term, something major, because in the first two years there won’t be anything to get it from”, he highlights.
Critical situation in 2023
In 2023, Brazilian municipalities also found themselves in a delicate situation regarding the fiscal scenario. According to the National Confederation of Municipalities (CNM), 51% of cities were in the red at the end of the first half of last year.
At the time, the scenario was worse in small municipalities, of which 53% recorded a primary deficit, that is, expenses greater than revenue. In medium and large companies, this percentage was 38%.
By Brasil 61
