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Five days for Congress to explain the FPE omission.

The acting president of the Supreme Federal Court (STF), Minister Ricardo Lewandowski, gave the president of Congress, José Sarney, five days to explain the omission in drafting new rules on the States' Participation Fund (FPE); Lewandowski's order was prompted by a lawsuit filed on Monday (21) by the governors of Bahia, Maranhão, Minas Gerais and Pernambuco, who ask that the current distribution be maintained while the Legislature does not update the criteria for sharing.

Five days for Congress to explain the FPE omission.

Agency Brazil - The acting president of the Supreme Federal Court (STF), Minister Ricardo Lewandowski, today (22) gave the president of the National Congress, José Sarney, five days to explain the omission in the elaboration of new rules on the State Participation Fund (FPE). In 2010, the Supreme Court understood that the current criteria are unconstitutional and determined a review by the end of last year, which did not occur. Lewandowski's order was motivated by a lawsuit filed yesterday (21) by the governors of Bahia, Maranhão, Minas Gerais and Pernambuco, the states most benefited by the rule considered unconstitutional by the Supreme Court. They ask that the current distribution be maintained while the Legislature does not update the criteria, as a possible blockage would result in losses to several states that depend on the fund.

The deadline for providing information to the STF starts to be counted from the notification of the president of Congress and the publication of the order in the Official Gazette of the Union, which should happen tomorrow (23). From then on, Lewandowski may decide the matter by means of an injunction during the recess or wait for the resumption of the court's work, in February. The original rapporteur of the matter is Minister Antonio Dias Toffoli.

The State Participation Fund is made up of 21,5% of the revenue from Income Tax and the Tax on Industrialized Products. Of this total, 85% is transferred to states in the North, Northeast, and Midwest regions, and 15% goes to the Southeast and South. The amount allocated to each federative unit takes into account its territorial extension, population size, and per capita income. The more populous and poorer the state, the more resources it receives.

Without a new distribution criterion approved by Congress, the states and the Federal District received R$ 774,8 million from the FPE last Friday (18), under the old rule. The amount refers to the second installment of the transfer relating to the month of January.