Deputy Kim Kataguiri (União-SP) presented a Complementary Bill (PLP) that establishes new rules of managerial responsibility for public companies and mixed-economy companies in Brazil with the aim of guaranteeing “efficiency and financial sustainability”.
The deputy’s proposal was presented last week, after the release of data from the Central Bank (BC) that revealed record losses in state-owned companies under the Lula government.
PLP 187/2024 suggests guidelines such as strategic planning, efficiency in the use of resources, transparency and accountability.
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Under Lula, record loss in state-owned companies reaches R$ 7.4 billion in the year to date
The text also prohibits these companies from operating with budget deficits, except in specific cases, in which a detailed report must be presented justifying the need for the deficit.
One of the main points of the project is the prohibition of the Union granting credit or financial support to loss-making companies that are unable to maintain regular operations.
In these cases, the company is expected to be privatized within one year after the declaration of operational incapacity, to be confirmed by the Court of Auditors.
“The proposal seeks to create preventive and corrective mechanisms to ensure the financial and administrative sustainability of these companies. It prevents recurring deficits from being covered with public resources, promoting external audits and, if necessary, the privatization of companies that become economically unviable”, says an excerpt from the project.
“In addition, the regulations require that exceptional deficits be justified by detailed and transparent reports, so that financial decisions are always well-founded and accessible to social control”, says another excerpt.
According to the deputy, the project aims to promote more responsible management and prevent public companies from overburdening the State and taxpayers.
“The project aims to provide more efficiency for the sector, protect public resources and ensure that the State does not assume financial liabilities from companies that operate in an unsustainable manner,” said Kataguiri in a note sent to Gazeta do Povo.
Record break in state competitions
According to data from the BC, the primary deficit of state-owned companies reached R$7.4 billion, from January to September 2024. It is the worst result for the period since the beginning of the BC’s historical series, in 2002.
The value also represents an increase of 258.9% in relation to the deficit of state-owned companies recorded in the same period last year, when the primary deficit was R$2.06 billion.
In federal state-owned companies, the negative result was R$4.1 billion. The shortfall for regional state-owned companies (state and municipal) was R$3.3 billion from January to September.
BC data considers all revenues and expenses of public companies, but does not account for the state-owned company’s net profit. The numbers do not include Petrobras, Eletrobras and public banks.
