FPM: May ends with a positive balance for city halls

May was positive for city halls with regard to transfers from the Municipal Participation Fund (FPM). A survey by Brazil 61 shows that the three transfers of the month totaled R$13.8 billion. In May last year, the sum of transfers reached R$12.4 billion. Even with accumulated inflation of almost 3.7% in the last 12 months, according to the IBGE, the FPM grew 7.5% in real terms.

Although the first transfer of the month grew by just 2.4% — and the second fell by almost 15% —, the third transfer from the Union to the municipalities made a difference to the positive balance in May, as it was approximately 25% higher than that carried out in the same period in 2023.

Public budget specialist Cesar Lima says that, at the end of June, it will be possible to analyze more precisely how the FPM has behaved throughout the year, since even with the collection records announced by the federal government there was a drop in some transfers, until here. “We are going to carry out a survey, at the end of this semester, to be able to know, in relation to last year, how the result is.”

Last transfer of May is now available

Because of the holiday Body of Christ this Thursday (30), the transfer of the third installment of May from the FPM was brought forward to this Wednesday (29). Municipalities that did not have their accounts blocked in the Integrated Financial Administration System (Siafi) due to some pending issue can now access the resources.

Lima recalls that municipal administrations can use resources to improve various services provided to the population. “These resources are free and can be used in any municipal budgetary action: paying staff, costs, water and electricity bills, investments in health, education, infrastructure”, he highlights.

City halls across the country share, in total, around R$4.7 billion. The amount already excludes the 20% percentage to be transferred to the Fund for Maintenance and Development of Basic Education and Valorization of Education Professionals (Fundeb),