Law provides for changes to the Fiscal Responsibility Law and other legislation related to fiscal management
The president (PT) sanctioned on Monday (13 January 2024) the Program for Full Payment of State Debts, which deals with the review of the terms of the debts of the States and the Federal District with the Union. The text was published in the Diário Union Official ( – 4MB) this Tuesday (14th January).
The program foresees the creation of a federal equalization fund, as well as changes to the Fiscal Responsibility Law and others related to fiscal management. The sanctioned Complementary Law aims to promote fiscal recovery, increased productivity, improvements in infrastructure, public security and education, with an emphasis on professional training.
The text covers direct and indirect public administrations, excluding non-dependent state-owned companies. States interested in the Full Payment of State Debts Program will be able to join the special review regime until December 31, 2025, covering debts signed under previous legislation. The outstanding balances will be consolidated, including additions such as interest, fines and charges provided for in the legislation in force at the time of the triggering events.
States that join the program will be able to settle their debts with the Union using different payment methods up to the stipulated deadline. Transfers in current currency, delivery of equity interests in state companies, transfer of movable or immovable assets, assignment of liquid and certain credits to the private sector or the Union, and delivery of credits registered in the active state debt may be carried out, as long as they are confessed and recoverable, subject to legal authorization and acceptance by the parties involved.
The remaining debts, after payments made as scheduled, will be refinanced in up to 360 monthly installments, with the first due on the 15th of the month following the signing of the contractual addendum. The reduction in balance will be recorded when transferring assets, except in specific cases, when it will be considered when signing the contract. The installments will follow the Price Table amortization model, guaranteeing full payment within the stipulated period.
