"A fiscal agenda ensures that the State functions."

Goiás 247 - Governor Marconi Perillo stated this Wednesday (17) that state administrations urgently need to define clear criteria for limiting current expenses, under penalty of "collapse". "Here in Goiás this has not happened and will not happen, because we did our homework, but other states are already in this situation," he warned. "In Goiás we have a fiscal responsibility agenda that has ensured that the state functions," said Marconi, who also stated that "the duty of the administrative machine is to provide public services efficiently."

Marconi spoke about the results of the adjustment, the progress of the works and the administration and auction of Celg, among other subjects, during an interview for radio stations 820 and 730 and for the newspaper O Hoje, at the Palácio das Esmeraldas. On Tuesday, the governor gave an interview to the news portals A Redação, Mais Goiás and Diário de Goiás. Below are some excerpts from the two interviews:

Meeting of governors from the Central-West, Northeast, and North regions.

We spoke with the President of the Republic and the President of the Senate about important points for our regions. We discussed the FEX (Export Fund) for the Northeast region. Brazil exports a lot thanks to raw material producers, such as Pará, Goiás, and Mato Grosso. All exports are tax-exempt by the states. The ICMS (Value-Added Tax) is not paid by exporters. This happens because of the Kandir Law, approved in 1987, with the objective of favoring exports and the trade balance. The federal government was supposed to reimburse the losses of the states that exempt the ICMS. But this has not been done. Last year's FEX was paid now. This year's FEX has not yet been paid and there is no forecast. We went to demand this because this amount is very significant for our coffers. Another request we made was that the federal government compensate for the losses in the states' participation funds. With the exemptions of IPI (Tax on Industrialized Products) and other federal taxes, the participation fund of the states and municipalities has been decreasing. We asked him to compensate for these losses. The governors of the North and Northeast also asked the president to make credit more flexible. There are states that are able to obtain loans, but they need the guarantee of the National Treasury. This is not the case for Goiás.

Postponement of the Celg auction

We expected this to happen based on market signals. We tried to get some companies to submit their proposals. But the market felt the price was too high. Together with Eletrobras, which owns Celg today, we will conduct a new evaluation and establish a new timeline. Both national and international groups want to buy Celg at a lower price. It should take us another two months. But I have no doubt that this process will have a positive outcome. This is also the assessment of the federal government. Goiás has already injected a lot of money since federalization. We made a contribution of R$ 1,9 billion through Celg Participações. We don't need to contribute anything more. Eletrobras is the one that needs to do that. This has been very clear in meetings with Eletrobras and the Ministry of Mines and Energy.

Fiscal Responsibility

We have a fiscal responsibility agenda that has ensured the state functions. Goiás must follow the path of fiscal responsibility and adjustments so that there is money left over for investments that improve people's lives. We cannot think only of a minority, but of the 6 million people of Goiás who need more investment in infrastructure and social programs. This depends on the state's financial and fiscal conditions. If we don't have an agenda that limits current spending, we won't have resources for investment. This will be harmful to society as a whole. Goiás has hospitals that are models for the country, such as Hugol, Hugo, Crer, and HGG. Our education system ranked 1st in the IDEB (Basic Education Development Index). We have made efforts in the areas of public safety and infrastructure. We need spending limits so that the people's money can be used for the benefit of the people.

PEC (Proposed Constitutional Amendment) limiting spending.

We are awaiting the approval of the constitutional amendment limiting spending, or the bill limiting spending that is being voted on in the Chamber of Deputies. We need to impose a spending limit in relation to GDP. If we don't do this, states risk collapsing. We already have states in this situation, unable to pay retirees, failing to serve the population in essential areas. Fiscal irresponsibility results in cuts to social programs, lack of gasoline for police vehicles, and a lack of resources for universities and hospitals to function. We are doing the opposite here. In Goiás, we are pursuing an agenda of fiscal and financial responsibility in government actions so that the machinery can function and provide services to the population.

Evolution of payment

The payroll in my first term was around R$100 million. Today it costs R$800 million. There was inflation and an increase in the value of public servants during this period. Today we need to analyze the current situation. Brazil is experiencing the biggest crisis in its history. We also need to analyze the global reality of resource shortages and reduced revenues. All of this needs to be carefully considered so that the public machine doesn't become stagnant and fails to fulfill its duty of providing services and investments that improve people's lives.

Limiting expenses

There is no other way. Either the states and the federal government define control mechanisms for all branches of government, including payroll, or the states will not be able to pay salaries and provide their services. That's what happens with other governments. This doesn't happen here, and it won't happen now. But if we don't have a limit to contain spending, according to revenue, we will have difficulties in the future. We are not an island. And we must think as a whole.

State investments in infrastructure

Our first priority was to address the adjustments needed to overcome the crisis. In this respect, we have indicators that show we were on the right track. In the first half of this year, we had the highest positive job creation balance in the country, a positive export balance of US$2,4 billion, industrial growth and revenue growth above the Brazilian average, and a GDP contraction lower than the national average. Our economy is reacting to the adjustments and the partnership with the private sector. On the other hand, we prioritize finishing the projects already started. We completed the work at Hugol Hospital, resumed the duplication of the Goiânia-Senador Canedo highway, the Goiânia-Bela Vista highway, the Morrinhos-Caldas-Novas highway, and the Goiânia-Goiás highway; we inaugurated the Sports Excellence Center; and are continuing with the Prison, the Socio-Educational Support Center, and the Anápolis Excellence Center. The priority is to finish what has already been started. We have other projects tendered, but these will only begin after funding is secured. The priority is to finish projects started by the previous administration.

Resources for new investments

From an investment standpoint, we now expect to expedite the State Asset Divestment Program (PDEG). On the other hand, we have secured and approved R$ 400 million in loans within our fiscal space. We will work towards opening new areas of investment next year. This funding has been authorized by the National Treasury, and we are in the process of attracting financial institutions willing to lend to Goiás, with the guarantee of the Federal Government. We are working on finalizing contracts with institutions in Brazil and abroad. With the fiscal adjustments made by state governments, we will certainly see an improvement in our rating, opening up new possibilities.