The Federal District government's budget deficit is R$ 6,8 billion.
This is according to the most recent projection of expenses and revenues prepared by the government of the Federal District; of the R$ 6,8 billion, R$ 3,7 billion refers to expenses that should have been paid during the administration of Agnelo Queiroz (PT); the survey, released by the Secretary of Finance, Leonardo Colombini, confirms the financial collapse in the Executive's accounts; with the new financial reprogramming, the government is working to streamline the public machine and increase revenue; the net current revenue projected for 2015 in the Budget Law was R$ 29,4 billion; with the updated figures, it has decreased to R$ 28,7 billion, a reduction of R$ 749 million.
Saulo Araújo, from Agência Brasília - The most recent projection of expenses and revenues prepared by the government of the Federal District found a budget deficit of R$ 6,8 billion. Of this amount, R$ 3,7 billion refers to expenses that should have been paid in the previous administration. As the new government has already settled some debts from 2014, the number could be even higher. The survey, released this Wednesday morning by the Secretary of Finance, Leonardo Colombini, confirms the financial collapse in the Executive's accounts.
With the new financial reprogramming, the government is working on strategies to further streamline the public sector and increase revenue. The net current revenue projected for 2015 in the Annual Budget Law (LOA) was R$ 29,4 billion. With the updated figures, it has decreased to R$ 28,7 billion — a reduction of R$ 749 million.
The opposite occurred with expenses, which, with the new calculations, increased from R$ 29,4 billion to R$ 31,9 billion, representing an increase of just over R$ 2,4 billion.
The budget law approved for the 2015 fiscal year set personnel expenses at approximately R$ 16,8 billion, but it does not include salary increases for civil servants, which will have an impact of R$ 1,8 billion this year. The staggered adjustments were granted to 31 civil service career paths in the Federal District. In the reprogramming, the Executive branch will have to disburse R$ 18,7 billion this year just to cover civil servant salaries.
This scenario could cause the government to exceed the prudential and maximum limits of the Fiscal Responsibility Law (LRF) in all three four-month periods of the year. These limits refer to the percentage of personnel expenses in relation to net current revenue. The tax revenue projection made by the Finance Secretariat shows that, if the scenario is maintained, the Federal District will exceed the LRF limits by 47,39%, 49,5%, and 48,92%, respectively, in the first, second, and third four-month periods of 2015.
The Fiscal Responsibility Law (LRF) establishes a prudential limit of 46,55% and a maximum limit of 49%. The Executive branch is already subject to a series of restrictions for having exceeded the prudential limit by 0,38% in the last four months of 2014. Therefore, the administration is prohibited from hiring employees, granting salary adjustments, among other limitations, until May.
Suppliers
According to Governor Rodrigo Rollemberg, the focus should remain on cutting expenses. He emphasizes the need for managers to think of creative measures to restore the financial health of the Federal District. "I have already ordered that studies be deepened in order to reduce expenses in the areas of personnel and operating costs. We are still auditing all accounts to see where else we can save money."
The Secretary of Finance, Leonardo Colombini, points out that the debt to suppliers alone exceeds R$ 1,8 billion. With the revenue versus expenditure equation practically consolidated, the plan now is to invite business owners to negotiate their liabilities. "We will call them, talk, and develop a payment schedule."
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