Disregard for the Fiscal Responsibility Law in Tocantins is a national highlight.
A report on the lack of budgetary and financial planning by past governments, shown on Bom Dia Brasil this Monday, the 2nd, cited Tocantins and twenty other states, plus the Federal District; In addition to the difficult reality for these states, found in January 2015, the report clarifies that "governors lost control of spending on civil servants and many even increased the debts that already existed in 2011, those long-term debts with banks and the federal government," the report emphasizes; during the government of Sandoval Cardoso (SD), Tocantins exceeded the ceiling of 49% of net revenue for personnel expenses and closed 2014 with 50,93%.
Tocantins 247 - Once again, Tocantins is in the national spotlight due to the lack of budgetary and financial planning by past governments. This Monday, the 2nd, the news program Bom Dia Brasil (Rede Globo) presented a survey on the difficult reality faced by governors of twenty states, plus the Federal District, who took office or reassumed office at the beginning of the year. Unfortunately, Tocantins is on the list.
The report highlights the lack of planning by the governments mentioned, specifically regarding personnel expenses. "Twenty states plus the Federal District spent more than they could afford in previous administrations, and at the start of the year, the new governments had to cut spending in important areas, especially for the poorest segments of the population," said the presenter Chico Pinheiro.
The article states that these states (see list below) have failed to pay, for example, "employees in essential areas such as health and education," because they did not respect the prudential limits of the Fiscal Responsibility Law (LRF).
The Fiscal Responsibility Law (LRF) imposes a limit of up to 49% of net revenue on states for personnel expenses. Above that, as the report rightly pointed out, "the State is prevented from making salary adjustments and creating new public positions." Tocantins exceeded the target and ended 2014 with 50,93%, a result of excessive hiring and salary adjustments without any planning.
In addition to the difficult reality these states faced in January 2015, the report clarifies that "governors lost control over spending on public employees, and many even increased the debts that already existed in 2011, those long-term debts with banks and the federal government," the article emphasizes.
Last week, the Folha de S.Paulo newspaper revealed that Tocantins was the second state in the country with the largest deficit in its accounts: R$ 522 million, representing 2,3% of its Gross Domestic Product (GDP).
Recovery of Tocantins
Anticipating the repercussions of this reality, Governor Marcelo Miranda presented, on February 11th, the Tocantins State Recovery Plan, a package of measures to help the State rebalance its public accounts, regain investor confidence, and ensure dignified living conditions for the population.
States that ended 2014 without a plan.
Tocantins, Roraima, Amazonas, Rondônia, Pará, Mato Grosso, Amapá, Federal District, Piauí, Bahia, Sergipe, Alagoas, Pernambuco, Rio Grande do Norte, Ceará, Espírito Santo, Rio de Janeiro, São Paulo, Paraná, Santa Catarina and Rio Grande do Sul. (From Secom)
Click here to watch the report.