Even after the debt renegotiation with the Union, in 2016, more than half of the Brazilian states have worsened fiscal indicators. That year, the federal government suspended payment and reduced portions of the state’s debt for two years, with the intention of giving them relief. However, a survey by Statistics/Broadcast, based on data from the National Treasury, shows that 14 of the 27 units of the federation were, at the end of 2018, with at least one of the two indicators of the Fiscal Responsibility Law – which measure indebtedness and personnel spending – worse than in 2015, at the height of the crisis that led to renegotiation.
Sao Paulo, Minas Gerais, Alagoas, Amazonas, Maranhao, Mato Grosso, Pernambuco, Piaui, Rio de Janeiro, Roraima, Santa Catarina, Tocantins, Bahia and the Federal District are in this list. Rio Grande do Norte, which recently declared a state of calamity, and Mato Grosso do Sul did not report the full data to the Treasury.
Rio Grande do Sul, one of the most serious cases, has shown a slight improvement since 2015, but continues to fall short of the Fiscal Responsibility Law in terms of debt. By law, state debt can not be more than twice its revenue. In the case of personnel expenses, this expense may not exceed 49% of the revenue for the state executive.