FPM: sum of transfers for the first five months of 2024 is greater than in 2022 and 2023

Between January and May this year, Brazilian city halls shared around R$67.3 billion from the Municipal Participation Fund (FPM). The amount is higher than what cities received in the past and, also, in 2022, according to a survey by public budget specialist Cesar Lima.

In the first five months of 2023, municipalities received around R$64.2 billion from the FPM. In the previous year, they pocketed R$46.1 billion. Even when comparing the years taking into account the inflationary effect, 2024 is the most positive of them, bringing a real increase in revenue for municipal coffers.

Cesar Lima says that the FPM’s performance can help improve the finances of city halls in 2024, since almost half of them ended last year in the red.

“In the first five months of 2022, R$46.17 billion were transferred to Brazilian municipalities. In 2023, even with all the crisis, R$64.2 billion and, this year, R$67.3 billion were transferred. Everything indicates that this will be a year of recovery for municipal finances, and it is up to the mayors to ensure good management so that they can close the year in the black”, he ponders.

FPM: First transfer of June with an increase of 26.8%

June maintains upward trend

Judging by the first transfer in June, which falls into the municipalities’ accounts this Monday (10), managers can continue to be excited about the 2024 FPM. This is because the transfer will be R$6.6 billion, more than R$ $1 billion higher than the same as last year. This is a real increase of almost 27%.

Mayor of São José do Triunfo (PR) and president of the Association of Municipalities of Campos Gerais do Paraná (AMCG), Abimael do Vale states that the FPM is the most important transfer from the Union to the municipalities and that mayors who manage to use the funds well Fund resources in times of growth end up improving the lives of the population.

“Of course, the increase in these transfers helps to increase public policies, they bring more efficiency, more guarantee for the good manager, who takes care of public resources, who treats these resources with planning and efficiency in his municipality, which translates into quality of life for its population, in the development of its municipality”, he says.

By Brasil 61