Second transfer of May from FPM to city halls will be 15% lower than the same amount last year

The municipalities will share R$1.28 billion, while in the second ten years of May 2023 this amount was R$1.44 billion. After a positive first quarter of 2024 for city halls, the FPM started to show fluctuations in April. The first two transfers of last month registered a drop, while the next two — the third in April and the first in May — were increases. Now, however, the FPM is falling again.

“We have a not very satisfactory result in relation to the FPM that will now be paid on the 20th. The worrying fact is that there is a very significant drop compared to last year which, if we add the inflation for the period, amounts to more than 14%” , assesses public budget specialist Cesar Lima.

Despite the negative result, he remembers that the balance of 2024 is still positive for city halls. “It’s important to emphasize that, overall for the year, we still have a positive result.”

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Impact on continuity of public policies

With just over four thousand inhabitants, according to IBGE, Pedra do Indaiá — in the west of Minas Gerais — depends on transfers from the Union and the state to keep its accounts up to date, since its own revenue is low, says mayor Mateus Marciano dos Santos.

He says that more than half of the city’s resources come from FPM transfers and that negative variations impact the continuity of public policies offered to the population. “My municipality essentially lives on FPM and, when a fall like this occurs, I have to rethink all the works and services in progress for fear of more falls coming in the coming months. I’m going to have to rethink the scenario so that we can, including, closing the mandate that ends this year”, he assesses.

City halls blocked

Until last Thursday (16), 19 municipalities were prevented from receiving the FPM, according to the Integrated Financial Administration System (Siafi).

The National Confederation of Municipalities (CNM) highlights that among the main reasons behind blocking the transfer of the FPM are debts between the city hall and the National Social Security Institute (INSS), lack of payment for the Public Servant Assets Training Program , Pasep, active debts with the Attorney General of the National Treasury (PGFN); and the lack of accountability in the Public Health Budget Information System (Siops).

Check if your city is on the list.

1. Muric (ES)
2. Corumbaíba (GO)
3. Itajá (GO)
4. Montividiu do Norte (GO)
5. Goiás Pillar (GO)
6. São Miguel do Araguaia (GO)
7. Poços de Caldas (MG)
8. Antônio João (MS)
9. Miranda (MS)
10. Canara (MT)
11. Dom Aquino (MT)
12. Carapebus (RJ)
13. Rio das Flores (RJ)
14. Pirambu (SE)
15. Philadelphia (TO)
16. Formoso do Araguaia (TO)
17. Palmeiras do Tocantins (TO)
18. North Beach (TO)
19. Talismã (TO)

The public manager who wants to unlock the resources must identify the reason and the body responsible for the freezing. From then on, you should try to regularize the situation. The city hall does not lose the money permanently. It only stays blocked while there are pending issues.