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In a document released in November, the Treasury also indicates that Brazilian states have taken advantage of service providers and, "in extreme cases," even servers to finance. The "credit transaction" is done when governments incur expenses, but do not delete them, leaving the leftovers to be paid from one year to the next.
The Treasury's Subnational Finance Bulletin also shows that remnants of all states increased by 75 percent last year to R29.7 billion. "There is a growing trend in the amounts registered (still to be paid) in most states, which can be seen as a way to finance states with their suppliers," says the document.
With 150 employees With a turnover of 74 million rand this year, Spacecom settles its accounts in these debtor states with the income it gets in the other 12 states where it also operates. According to Bloomfield, in Tocantins, the company suspended its services. In Goiás, the government questioned the quality of service provided by a contract valid until last June, but signed another contract with the company in August, according to Bloomfield.
The O Estado de São Paulo newspaper reported that in Goiás, the government of José Eliton (PSDB) had concentrated in recent weeks on the payment of debts mainly. contracted in the last two quarters. In this way, he is able to comply with the Financial Accountability Act (LRF), which states that during the last eight months of his term, the governor may not incur obligations without the necessary liquidity to delete them. However, this strategy by the Goiás government could prevent Spacecom from receiving around 2 million rand from the first contract signed in April 2017.
Goiás' finance secretary has sought to have worked for "the best possible financial result" at the end of the year "and that the final figures of the year, which will indicate the existence or not of a balance – still have to be paid in 2018, had not yet consolidated
General and Tocantins did not return the interview requests. The report was unable to contact the Tocantins Secretariat for Justice and Citizenship. The Prison Administration Department of Maranhão, responsible for the Bloomfield payment, indicated that the amount billed by Spacecom was higher than the market price and that, therefore, the contract was disputed.
According to the economist Pedro Schneider, of Itaú, despite the restrictions imposed by the LRF last year under the terms of reference, the tendency is that the States continue to leave the left to pay, their main problem today being the high cost with the staff. "Given the situation in Rio, for example, it is certain that the state will leave some remains this year."
Schneider points out that, although the remainders are paid throughout the country, most of them they are concentrated in already fragile states – 42% of total debt in 2017 comes from Rio and Minas Gerais. In these two states, personnel costs account for 70.8% and 79.18% of current net income, respectively. The limit set by the LRF is 60%.
The economist Fabio Klein, of Tendências Consultoria, argues that the fact that the outstanding debts are not counted in the main result of the states creates a false impression. that there is no tax problem. In the methodology of the main result adopted by the State Treasury, only expenditure already paid is considered.
To better reflect the reality, Tendências began to use a different methodology, which considers the expenses incurred (amounts reserved for a payment result in outstanding payments). "The commitment can even be canceled but, roughly speaking, it's a service that will be provided and that will have to be paid at some point," Klein said. The information comes from the newspaper O Estado de S. Paulo
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