FPM: municipalities receive almost R$500 million more this Tuesday (30) than in the same period last year

This Tuesday (30) Brazilian city halls receive R$4.88 billion from the Municipal Participation Fund (FPM). There are almost R$500 million more in the third transfer in April than in the same period in 2023.

The transfer will be enough not only to offset the impact of inflation in the last 12 months — which according to the IPCA was 3.93% — but also to give the municipal coffers a real increase in resources: 7.4%.

Public budget specialist Cesar Lima says that managers have yet another reason to celebrate. After all, the increase interrupts a sequence of two consecutive falls in the FPM in April.

“It’s good news that this downward trend is breaking. This is very good for the municipalities”, he assesses. “We’ll have to watch a little further, to see if (the falls) really were a spur-of-the-moment thing,” he ponders.

Essential

According to the National Confederation of Municipalities (CNM), the FPM is the main source of revenue for seven out of ten Brazilian cities.

In Paraná, it is no different, says Roberto Justus, mayor of Guaratuba, a municipality with around 42 thousand inhabitants. The manager says that the fund’s transfers guarantee the survival of most city halls

“The importance (for Guaratuba) 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 to maintain public services, so that the city halls remain open, it is essential that this transfer. remain,” he says.

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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 Tuesday corresponds to just over R$ 1.2 million.