The Oversight Council, which monitors the fiscal adjustment measures that Rio de Janeiro has committed to in order to enter the Fiscal Recovery Regime (RRF), rejected a proposal from the state to compensate for extra expenses. If Governor Wilson Witzel does not present an alternative by July 1st, the federal bailout program may be terminated.
Earlier this month, the panel had questioned the Rio de Janeiro state government about measures to compensate for 25 breaches of the RRF, which granted relief in the payment of public debt to the Union and requires, in return, cuts in public spending.
Among the violations of the regime's rules is, for example, a new career plan for UERJ (Rio de Janeiro State University) employees. The Supervisory Council calculated that the measures would have an impact of R$ 599,7 million on state accounts.
Rio had until the 15th to present compensation proposals and met the deadline. However, according to the technical group's calculations, the state's proposals have an impact of R$ 568,7 million. Therefore, exactly R$ 31 million would be missing in compensatory measures.
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