The financial bailout of the states

In a book to be launched next Tuesday, the 17th, at the Federal Senate Library, under the title "Settling Accounts – The Zero Debt of the States," journalist and economist José Carlos de Assis argues that the debt of securities origin of States and Municipalities, amounting to R$ 111 billion in December 2017 currency, is technically zero, being the main reason for the strangulation of essential public services.

The debt was consolidated in 1977, under pressure from the IMF and due to the application of the draconian Fiscal Responsibility Law. This resulted in payments already made of R$ 277 billion, leaving an incredible R$ 476 billion still to be paid. The restitution to the states of the amounts that were taken from them over time will enable a true regeneration of public services at the state level, such as health, education, security, and infrastructure.

Assis advocates for the restitution of resources paid to the Federal Government in the form of development funds under the joint control of executive and legislative committees at the federal and state levels, as well as representatives of civil society. The funds for this would come from the issuance of federal government bonds, similar to those currently being issued, albeit in vain, to cover this year's strictly financial public deficit.

According to the author of "Settling Accounts," the suggested method of payment is essentially virtuous, since the resources obtained by the States, in terms of restitution of undue payments to the Union, will represent a form of financing public investment in areas essential to the citizen, similar to a kind of Brazilian New Deal policy. "Settling Accounts" has a preface by Senator Roberto Requião.