FPM: 39 city halls are prevented from receiving transfers

Research on the website of Siafi (Integrated System of Financial Administration of the federal government) last Friday (16) informs that, on that day, 39 city halls were prevented from receiving FPM (Municipal Participation Fund) transfers. The Fund’s second ten-day period is transferred this Tuesday (20) to more than 5,000 municipalities in Brazil, in amounts that add up to almost R$ 3 billion. Expert guides what the mayor should do to get out of the restriction.

Money from the FPM is very important for most municipalities, especially the smaller and poorer ones, because it is a permanent source of funds – deposits are made every ten days, three times a month (hence the name “decêndio” ) – so that fundamental expenses for the population are paid, such as the payroll and basic health services.

Siafi works as a large database that centralizes, in a single system, all information regarding budgetary, asset and financial executions of the Federal Union. The restriction to the name of the municipality is not always due to delays, defaults and non-payment of taxes.

The origin of the blockade could also be due to bureaucratic issues, such as the failure to provide some type of document that the city hall had committed to forwarding to federal agencies and did not do so in a timely manner. According to budget consultant César Lima, city hall representatives who are in this situation should seek the Federal Revenue Service or the PGFN (Attorney General of the National Treasury) in their region to resolve the problem and continue receiving transfers.

“What I suggest is that these municipalities look for the Federal Revenue Service or the PGFM to negotiate these debts. After negotiation, paying the first installment, unlocking is already automatic”, advised the consultant.

FPM: See if your municipality is blocked:

1. Alagoinha (PB)
2. Amaranth (PI)
3. Banana trees (Pb)
4. Bicas (MG)
5. Bonfim (RR)
6. Campo Alegre do Fidalgo (PI)
7. Capivari do Sul (RS)
8. Caratinga (MG)
9. Carira (SE)
10. Carmópolis (SE)
11. Congonhas (MG)
12. Cushion (MS)
13. Cruise (SP)
14. Eldorado do Carajás (PA)
15. Feira de Santana (BA)
16. Anthill (RS)
17. Gameleira from Goiás (GO)
18. Itaporanga D’ajuda (SE)
19. Jaboti (PR)
20. Silver Lagoon (MG)
21. Macambira (SE)
22. Manoel Vitorino (BA)
23. Moreira Sales    (PR)
24. Our Lady of Sorrows (SE)
25. Our Lady of Socorro (SE)
26. Parauapebas (PA)
27. Pebbles (SE)
28. Redemption of the Bourgea (PI)
29. Santana dos Garrotes (PB)
30. Santo Antônio dos Milagres (PI)
31. Sao Bernardo MA)
32. Santo Domingo (SE)
33. São Gonçalo do Pará (MG)
34. Sebastião Laranjeiras (BA)
35. Tamandaré (PE)
36. Fragoso Badger (MA)
37. Tile (SE)
38. Three Bars (SC)
39. Umbaúba (SE)

FPM: Importance for municipalities

The FPM is one of the main sources of revenue for municipalities. According to data from the CNM (National Confederation of Municipalities), the Fund is the largest source of funds for about 60% of city halls throughout Brazil. When tax collection falls, most municipal managers face great difficulties in keeping accounts up to date.

The mayor of Alcantil (PB), Cícero José Fernandes do Carmo, revealed that his municipality has only 5,832 inhabitants and depends 100% on the FPM to survive. “Our municipality is small, and depends 100% on FPM and ICMS transfers. There is no collection, the collection is IPTU, which is very little, very low. When the collection drops, the account does not close ”, he explained.

FPM: How it works

The FPM is a fund that represents 22.5% of the collection of the Union with the amounts received by the Federal Income Tax Office and the IPI. There are three transfers of resources per month, made every ten days (hence the name “ten days”). If the date falls on a Saturday, Sunday or a holiday, the transfer is brought forward to the first previous business day. City hall money is credited by Banco do Brasil.

FPM: Percentages

The participation percentages of each municipality are calculated annually by TCU, according to the number of inhabitants of each city and income per capita of the states. Municipalities are divided into three categories: capital, interior and reserve. State capitals and Brasilia receive 10% of the FPM.

The other Brazilian municipalities are considered inland, and pocket 86.4% of the fund. Reserve municipalities are those with a population greater than 142,633 inhabitants and receive – in addition to participation as an interior municipality – an additional quota of 3.6%.