The Government sees little advantage in what was sanctioned by the president () last Monday (13) and decided not to join the project.
Before, the management (Republicans) saw the so-called Propag (Program for Full Payment of State Debts) as a way of guaranteeing a greater flow of debt relief, the reduction of its interest rate, and, therefore, greater reserves for investments .
However, with the veto on the possibility of using the FNDR (National Fund for Regional Development) to reduce part of the debt with the Union, among other changes, he assessed that the program would bring more limitations than benefits to the state.
The fund will receive millionaire transfers from the federal government from 2029 onwards. São Paulo could use the resources to obtain cash relief. Planalto, however, considered the article unconstitutional.
According to allies, Tarcísio should not try to reverse the veto. He even discussed the matter with the governor of Rio de Janeiro, (PL), but considers that the situation in São Paulo is different from other states, with a worse financial situation.
Rio de Janeiro and Rio Grande do Sul consider that the rules sanctioned by Lula are harmful in the short term. Minas Gerais may lose out at the beginning, but it is still considering joining with an eye on long-term benefits.
Together, the four states represent more than 80% of the states’ debt to the Union.
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