FPM: Extra transfer totals R$8 billion; Union transfers funds this Wednesday (10)

Brazilian municipalities will receive this Wednesday (10), together with the first installment of July from the Municipal Participation Fund (FPM), the extra installment of 1% — an amount of R$ 8.08 billion. The amount was calculated based on the collection of the factors that make up the FPM — IR and IPI — between July 2023 and June 2024.

Extra amounts, but which are already expected by those who work with budgets. This is the case of the mayor of Ubá, a city in the Zona da Mata region of Minas Gerais, Edson Teixeira. “We don’t even count it as extra because it comes every year,” celebrates the manager, who already has a specific destination for the installment.

“It (the money) helps me a lot with the first installment of the thirteenth salary. It practically guarantees the first installment for the permanent employees and this gives some relief on the bill, because we don’t need to mess with other accounts to be able to pay the thirteenth salary.”

The mayor, who is in the last year of his second term, can no longer run for the local executive position, but is concerned about keeping the accounts up to date to hand over the city hall without debts, with cash in hand and no outstanding payments.

Accounts up to date

Just as Mayor Edson Teixeira wants to hand over his mandate with his accounts up to date, all other local managers need to be aware of their finances, as budget advisor Cesar Lima explains.

“Also because the law states that they have to hand over the city halls with cash in hand for the expenses of the month of January, in addition to not being able to grant salary adjustments that will have an impact on the term of office of the next manager.”

The extra installments of the FPM — paid in March, July and December — serve precisely to compensate the amounts and help with the municipalities’ costs.

To find out how much your municipality will receive in this extra transfer, access the map

First installment of July

The second half of the year begins with a drop in transfers from the Municipal Participation Fund (FPM) when compared to the first ten days of last month. The amount deposited in the accounts of city halls across the country on the 10th will be R$3.4 billion. This amount is 48% lower than that recorded in the same ten-day period in June and 7% lower than that of the same period last year.

Comparative values: