Aracaju is the second capital city in the country in terms of reduced spending.

Sergipe 247 - In the current financial climate facing the country, states and municipalities face the daily challenge of stretching resources to the limit, just like a housewife manages a budget. It's a constant negotiating here, cutting expenses there, all so that at the end of the month the bills are paid and, ideally, there's some money left over. When that happens, whether it's the head of the household or a public administrator, they can say they've done their homework. 

This has been the case in the Aracaju City Hall. After inheriting an administration with a complete imbalance in its finances, Mayor Edvaldo Nogueira ordered a reduction in all possible expenses. The result? "The capital is the first in the Northeast and the second in the country to reduce current expenses, taking into account the consolidated data referring to the third two-month period of 2017, compared to the same period of the previous year," informs the Secretary of Finance, Jeferson Passos. 

According to the Brazilian Finance System of the National Treasury Secretariat (Finbra), the total reduction rate in Aracaju reaches -20,50%, second only to the city of Porto Velho, which reached -23,27%. "Current expenses are those incurred to cover the operating costs of the secretariats. In other words, the cut made did not affect the services offered to the population, but was the result of a contingency plan that identified and reduced expenses considered unnecessary or excessive. This is a priority of this administration's financial policy," emphasized the secretary. 

Cost reduction

The control and better allocation of resources for the effective execution of municipal spending continues to be carried out quite effectively. To give an idea, in the last nine months of the year, the city hall achieved a reduction in current expenses related to operating costs of approximately R$ 49 million – this figure does not include personnel expenses – from which some examples can be highlighted that clearly demonstrate how this control has been implemented. "We recorded quite significant reductions in daily allowances paid, around R$ 400 (equivalent to 67% savings); consumable materials, where we highlight the cut of R$ 2,6 million (55%), including R$ 409 in fuel (27%); a decrease of R$ 343 in travel and transportation expenses (67%), R$ 1,8 million in services contracted from individuals (37%), which includes savings of R$ 386 in property rentals (26%) and R$ 773 in interns (31% less than in the same period last year)," details Jeferson Passos. 

The manager also comments on the reduction in the contracting of legal entities, where the Aracaju City Hall saved R$ 18,655 million this year (42%). "In this segment, we highlight the rental of equipment and movable assets, such as vehicles and computers, where R$ 1,8 million was reduced (39%), electricity service, saving R$ 5 million (32%), R$ 3,650 million reduced in fees for artistic performances (99%), R$ 4 million in Advertising and Publicity services (70%) and R$ 685 thousand in telecommunications services (28% savings)." 

Inherited debts 

These figures show that, little by little, Edvaldo Nogueira's administration has been able to rebalance the accounts. However, it is important to emphasize that the resources resulting from these savings have been used, as the Secretary of Finance clarifies, to continue paying off debts inherited from the previous administration. "The resumption of investments that has been occurring is the result of resources already obtained through agreements and credit operations with the Federal Government, since almost all of the saved amount is directed towards paying off the debts left by the previous administration," he points out. 

According to him, the effects of these debts will most likely be felt for the next four years. "In fact, this is the timeframe we have been using to pay off debts to suppliers in installments," adds Jeferson Passos, emphasizing that there are no resources available for expanding services. "The normalization of salary payments for employees and negotiations with suppliers is a result of this budget cut. In the future, we will see a return to balance, but the level of difficulty remains high," he warns.

With advice