Haddad cuts everything at the São Paulo city hall.
The mayor has frozen R$ 5,2 billion of the budget – equivalent to 12,3% of the estimated revenue for this year; parliamentary amendments and internal spending have also been suspended; the order for secretaries is to economize; since taking office, the Workers' Party member has been locked in a power struggle with the federal government and has called the government a "loan shark" in relation to the municipalities' debts.
247 - Mayor Fernando Haddad (PT) yesterday froze all planned government spending. The order is to save money until resources can be released, supplemented by state and federal transfers. So far, R$ 5,2 billion of the budget has been frozen, or 12,3% of the estimated revenue for this year.
The measure mainly affects projects underway or promised by the current administration, such as the so-called "Arc of the Future," which foresees the construction of avenues for R$ 20 billion. Only projects with reserved funds, such as the 66 km of bus corridor already tendered, and priority projects, especially in the areas of Health and Education, are authorized.
The government also plans to suspend payments of R$ 700 million in parliamentary amendments, in addition to a 50% cut in internal expenses. By order of Haddad, only secretaries with available funds will be able to implement projects.
Since taking office as mayor, Haddad has not spared the state and the federal government from criticism. He called the government a "loan shark" in relation to the municipalities' debts and did not appoint any party representatives to the 31 sub-prefectures, choosing instead career engineers and architects from the municipal service.