Salary increase for civil servants will be announced this Friday.

Alese Agency - The expected salary adjustment for state public employees will be announced on Friday, the 20th. The proposal will be sent to the state representatives. The announcement was made by the Secretary of State for Finance, Jeferson Passos, during a hearing at the Finance Committee of the Legislative Assembly. The government official presented the fiscal data for the first four months of 2014. The numbers did not cause a stir: they are similar to the balance sheet presented last week when the data for the last four months of 2013 were detailed.

The state's total revenue grew 7,2% compared to the same period last year (January, February, March, and April). Jeferson Passos said that the state collected R$ 2,4 billion, a difference of R$ 291 million compared to the first four months of 2013. As expected, the ICMS (Value-Added Tax) and the State Participation Fund (FPE) were the main sources of revenue. The ICMS increased by 4,3% (excluding the IPCA inflation index). The FPE grew even more: 7,8% (excluding the IPCA inflation index).

There was a significant drop in revenue between February and March, with a recovery in collection in April. According to the secretary, the fluctuating revenue trend is repeating last year's pattern. Secondly, periods of higher and lower revenue, and increased expenses, are usually factored into financial planning. Jeferson Passos stated that in the first four months of 2014, total expenses amounted to R$ 2,2 billion, compared to R$ 2 billion in the same period last year, an increase of 10%.

“During this period, there was an increase in resources from capital transfers, such as the allocation of money to programs like Proinveste,” explained the secretary, who nevertheless highlighted the balance in spending. Between February and April of this year, the State has maintained the same level of expenses, around R$ 600 million per month. The graphs of this performance become even more impressive between November and December with the extra payment of the thirteenth salary.

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Currently, the government spends 64% of its revenue on personnel and social security contributions. Operating costs account for 21% of revenue. The biggest problem, according to the figures presented by the secretary to the deputies, lies in Social Security. It collected R$ 249 million in social security contributions in the first four months of the year, an 8,3% increase compared to the same period last year. The government has been forced to cover the Social Security deficit, which this year is expected to consume R$ 750 million in contributions.

Estimates for 2015 are even worse: projections indicate an investment of R$ 1 billion to cover the payroll for retirees.
Expenses are a concern. Jeferson Passos said there was a 13,5% increase in the first four months of the year, compared to the first four months of 2013. The secretary also said that the state's debt is under control. According to the government official, the net fiscal debt was R$ 2,1 billion in April 2014, compared to R$ 2,3 billion in December of last year, a decrease of 11,7%. The consolidated debt of the State of Sergipe, according to Passos, is R$ 3,6 billion. The secretary also presented figures on personnel expenses across the different branches of government.

State Representative Samuel questioned the delay in forwarding the salary readjustment. The parliamentarian has been insistently demanding a salary increase for categories that have suffered a long period without any readjustment. Representative Ana Lúcia expressed concern about the decrease in resource allocation to the Education sector. According to her, it is necessary to resolve the issue of Social Security. "The branches of government have to become aware. The employees of the branches of government have to bear these expenses."

The government leader, Francisco Gualberto, highlighted the fact that the State has shown the capacity to contract new debts, assuring that Proredes will not cause the government to exceed its debt capacity. "The State will be able to pay Proredes, because we have improved the debt ratio." The capacity to contract debts, which was at 64% in 2006, explained Gualberto, has reached 48%.

Representative Gilson Andrade said that the State should allocate more resources to Health and Education. "This government ends on December 31st, and how will it settle the debts of the health foundations in less than six months?" he questioned. Jeferson stated that the State is not violating the Fiscal Responsibility Law (LRF) and is making constitutional transfers. He further affirmed that the State has the capacity to pay for Proredes and that the project represents more revenue in the future.