Mother’s Day makes FPM grow 28% compared to the same period last year

Mother’s Day makes FPM grow 28% compared to the same period last year
City halls across Brazil receive, this Friday (19), money from the Municipalities Participation Fund (FPM) for the second ten days of May. In all, R$ 1,447,449,360.57 will be transferred – an increase of approximately 28%, compared to the amount deposited in the same period last year.

Resources refer to the second ten days of May. As it falls on a Saturday, payment is usually made in advance on the first working day before. The FPM is one of the main sources of revenue for municipalities and helps to cover mandatory expenses, such as paying civil servants and Social Security, in addition to improvements for the population.

According to Budget consultant César Lima, the increase in the amount transferred by the Federal Union through the FPM, this time, happened mainly because of the growth in government revenue, during the days leading up to Mother’s Day. According to him, the increase was generated by increased sales in trade and also by the opening of job vacancies in the period.

FPM: check the values ​​for your municipality

The specialist in Public Budgets and Finance noted that, despite the result being lower than in recent ten-day periods, deposited this year, the news is good because – in relation to the total transferred to city halls in the second ten-day period of 2022 -, in this ten-day period the value of the FPM registered a “significant” increase.

“These 28% increase were influenced by things that favored the economy, in this case the improvement in the general level of jobs and Mother’s Day trade”, highlighted César Lima. “It was even better than last year, when we were still at the edge of the pandemic, (but) this year people really decided to meet and celebrate”, he justified.

Importance

The FPM is one of the main sources of revenue for municipalities. According to the National Confederation of Municipalities (CNM), the Fund is the largest source of funds for approximately 60% of city halls throughout Brazil. When revenue falls, most city halls face great difficulties in keeping accounts up to date. When it increases, as was the case – as clarified by specialist in Budgets and Finance César Lima, the news is celebrated.

According to Mayor Elmo Vaz, from Irecê (BA) – a city with over 80,000 inhabitants – local revenue is insufficient to solve the various problems faced by the population. “Irecê has been suffering a lot with the drop in ICMS passed on by the State government and lost, in this first semester, about R$ 4 million – which means a lot, considering our capacity”, he informed.

Own resources

“We are obliged to allocate our own resources to complement the transfer from the Union to pay for Health, Education and social programs”, detailed the mayor. “In the same way, all other resources, to be applied in Culture, Infrastructure, Sports and other areas of the municipality, we do with own resources from sources such as IPTU and fees charged by the municipality”, he explained.

Elmo Vaz noted that, even so, the money that Irecê collects does not meet all demands, especially infrastructure: “Because the municipality suffers a lot from the rains, because it does not have a macro drainage project, because it does not have a sanitary sewage project” .

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.

The participation percentages of each municipality are calculated annually by the TCU, according to the number of inhabitants of each city and the per capita income 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%.

City halls blocked

According to information from Siafi (Integrated System of Financial Administration of the Federal Government), the municipalities below are prevented from receiving transfers from the FPM. To resolve the situation or obtain further clarification, your representatives should go to the responsible body in your region for regularization and unblocking.

  • Afonso Bezerra (RN)
  • White Water (PB)
  • Amaranth (PI)
  • Arinos (MG)
  • Bacabeira (MA)
  • Bicas (MG)
  • Buriticupu (MA)
  • Capivari do Sul (RS)
  • Caratinga (MG)
  • Carmópolis (SE)
  • Caturama (BA)
  • Chorozinho (CE)
  • Congonhas (MG)
  • Cruise (SP)
  • Fatima (BA)
  • Ibiapine (CE)
  • Islet (SC)
  • Inga (PB)
  • Wednesday (MG)
  • Itiruçu (BA)
  • Silver Lagoon (MG)
  • Lajeado do Bugre (RS)
  • Maiquinique (BA)
  • Mancio Lima (AC)
  • Marking (PB)
  • Morrinhos (GO)
  • Nazaria (PI)
  • Palmeira das Missões (RS)
  • Pebbles (SE)
  • Peter II (PI)
  • Penaforte (CE)
  • Pillar (BP)
  • Redemption (CE)
  • Ribeirão Claro (PR)
  • Santo Antônio dos Milagres (PI)
  • Seridó (PB)
  • Serra do Ramalho (BA)
  • Seventh of September (RS)
  • Fragoso Badger (MA)

By Brasil 61

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