After President Luiz Inácio Lula da Silva sanctioned, with several vetoes, the project that creates the Program for Full Payment of State Debts (Propag), some governors expressed discontent and threatened not to join the program, according to sources interviewed by the newspaper Folha de S .Paul.
Still according to the report, Rio de Janeiro and Rio Grande do Sul are among the states that evaluate no, as they consider that the rules sanctioned by Lula are harmful in the short term. Minas Gerais may also face initial losses, but is still evaluating adherence, focusing on long-term benefits.
Lula vetoed the articles that allowed States registered in the Fiscal Recovery Regime (RRF) – Rio de Janeiro, Rio Grande do Sul and Goiás – to accumulate benefits with Propag, as this would “increase the fiscal impact of the Program for the Union” . Another vetoed article exempted States that requested to join Propag from meeting the goals already agreed in the RRF. The president also vetoed an article that suspended the triggers of the Fiscal Responsibility Law (LRF) in case of violation of personnel spending limits by States.
Representatives of the other states criticize the federal government for a decision that, in their opinion, may have privileged the state of São Paulo, which has the largest debt with the Union. Other interlocutors, however, claim that one of the vetoes may have reduced the attractiveness of the program for the São Paulo government.
The deadline for states to join Propag is December 31st of this year.
