Amupe: 130 out of 184 municipalities are not complying with the Fiscal Responsibility Law.
The president of the Pernambuco Municipal Association (Amupe), José Patriota (PSB), admitted that 130 of the 184 municipalities in Pernambuco are facing difficulties due to the drop in federal transfers. "Most of us have 94% of our revenue tied to the Union. In the Federal Government, in turn, the IPI [Tax on Industrialized Products] has fallen. So if there is no revenue, the FPM [Municipal Participation Fund] falls," he said; "Today there are 130 mayors who are violating the Fiscal Responsibility Law and could be accused of having a 'dirty record'," he added.
Pernambuco 247 - A week after the State Audit Court (TCE) harshly criticized the dependence of municipal administrations on federal transfers and the lack of commitment from managers to improve revenue collection, risking violations of the Fiscal Responsibility Law, the president of the Pernambuco Municipal Association (Amupe), José Patriota (PSB), admitted that 130 of the 184 municipalities in Pernambuco are facing difficulties due to the drop in federal transfers. "Most of us have 94% of our revenue tied to the Union. In the Federal Government, in turn, the IPI [Tax on Industrialized Products] has fallen. So if there is no revenue, the FPM [Municipal Participation Fund] falls," he explained.
"Then the Court of Auditors, all trained, tenured, highly prepared auditors, takes the report and says: Look here, the mayor stopped. Then it gets dirty. The Public Prosecutor's Office, another very prepared team, studious young men, takes the cold letter of the law and here it is: let's denounce this corrupt official. Then we go on the list of corrupt officials," said Patriota in an interview with Rádio Folha FM. "Today there are 130 mayors who are violating the Fiscal Responsibility Law and could be accused of having a corrupt record," he admitted.
Patriota, however, acknowledges that many administrators remained complacent, solely waiting for federal transfers without promoting any kind of improvement in municipal revenue. "The economic activity of small municipalities is low. That's the first factor. Another factor that isn't true is that all mayors have become complacent. In fact, a large majority of them have become complacent. They could have had more activity, more revenue. But many have tried to do so. Is it easy? No, because there's already a large tax burden. Raising taxes is unpopular, and collecting them is even worse," he emphasized.