The figures regarding the economic downturn in the state of Rio are tragic. According to the Secretary of Finance, Luiz Claudio Rodrigues de Carvalho, the state is expected to lose R$ 5 billion in revenue in just the next two months. By the end of 2020, losses could reach R$ 15 billion. In Luiz Claudio's opinion, the resources promised by the government would be insufficient to cover the shortfall.
– The state of Rio is expected to lose around R$ 1,1 billion in ICMS (a state sales tax) and R$ 300 million in oil royalties in April alone. It is expected to lose another R$ 1,6 billion (in ICMS) in May and something like R$ 2 billion in royalties. If you add it all up, that's about R$ 5 billion in lost revenue in two months. It's impossible to balance the books — says the secretary.
The Finance Department estimates losses of R$ 11,7 billion in ICMS (Value-Added Tax) and R$ 4 billion in royalties and special participations by the end of 2020. Governor Wilson Witzel even stated that Rio could potentially lose R$ 10 billion in revenue due to fluctuations in the price of oil.
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