President Lula’s (PT) sanction of (Propag) included vetoes that displeased the government of Minas Gerais to the point that (Novo) and his vice, Mateus Simões (Novo), took to social media to criticize the president.
The Panel found that two vetoes, which change existing rules within the scope of the Fiscal Recovery Regime (RRF), are the most problematic from the point of view of the state administration.
One of them refers to the reduction of states’ debt with other entities, such as international organizations. In the RRF, the federal government honors this liability and the state starts paying the government under the conditions of the regime, which provides for discounted installments and longer payment times.
In the Zema government’s assessment, if the state joins Propag, it will have to pay billions in debt, including to the World Bank.
“Lula wants to force miners to transfer R$5 billion more in 25/26, despite the record federal revenue: R$2.4 trillion in 2024”, says an excerpt from the governor’s post on social media.
Another veto that caused dissatisfaction was in the section that suspended a law on punishments for states that exceed limits with personnel expenses.
Among the punishments are the prohibition of state management from receiving transfers, guarantees or accessing credit. The government claims that this article loses its validity with the presentation of the fiscal recovery plan in the RRF, but will come into force again with Propag.
Zema was a defender of Propag, a proposal from the president of , (), and said that the state would leave the RRF to join the new program as soon as possible.
Last week, Minister Fernando Haddad (Finance) said that the president would veto points that impact the government’s primary result.
Another governor who took to social media to question the vetoes was (), from Rio Grande do Sul, who complained about another point in the proposal that benefited his state.
He said that he will work with his bench to overturn these vetoes, something that the Zema administration also intends to do.
On Tuesday night, Pacheco sent a statement to the press in which he refuted the governors’ criticism of the president.
“The time is to thank President Lula for sanctioning Propag and take advantage of the opportunity that the states will have to address a historic problem”, says an excerpt from the statement.
In addition to Minas and Rio Grande do Sul, Rio de Janeiro and São Paulo are considered over-indebted states, as they concentrate 90% of the entities’ debts to the Union.
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