Rio government warns it may not be able to pay civil servants' salaries as early as August.
The Finance Secretary of Rio de Janeiro, Luiz Claudio Rodrigues de Carvalho, said that the state would need to receive R$ 10 billion of the R$ 15 billion requested from the federal government to ensure salary payments and guarantee the functioning of essential services.
247 - The Finance Secretary of Rio de Janeiro, Luiz Claudio Rodrigues de Carvalho, said that the state may not have enough funds to pay the August salaries of public employees if it does not receive financial aid from the federal government. According to him, Rio would need to receive at least R$ 10 billion of the R$ 15 billion requested to ensure salary payments and guarantee the operation of essential services.
According to a report in the newspaper O Globo, Carvalho allegedly said that not even the July salaries of public employees are guaranteed and that "treasury maneuvers" would be necessary to ensure payment.
“Without federal assistance, we will already have difficulty paying salaries in July (referring to the month worked in June). I'm not saying we won't be able to pay, because we might be able to manage by making some treasury maneuvers. In August, then yes, for sure, we won't have the money to pay civil servants. Obviously, this also affects the payment of the thirteenth salary,” said Carvalho.
“No Brazilian state can survive a 30% drop in revenue. All are subject to problems without federal aid. When money runs out, states will delay payments to suppliers. Then, the salaries of public employees. If the federal government doesn't help states and municipalities, they will all go bankrupt and we will have yet another crisis: the bankruptcy of states and municipalities,” warned Carvalho.