In his re-election as mayor of Rio, Paes publishes 44 fiscal adjustment decrees

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On the first day of his third term as mayor of Rio de Janeiro (RJ), Eduardo Paes (DEM) published, this Friday, 1st, more than 40 decrees with measures of fiscal adjustment. They range from direct spending cuts, such as the order for the Rio de Janeiro public machinery to cut gratuity expenses in half, to the preparation of tax and social security reforms and a tax recovery plan. All are in the first edition of the Official Gazette of the Municipality under the new mayor.

Ahead of the adjustment is the new municipal secretary of Finance and Planning, Pedro Paulo (DEM), until then a federal deputy. Paes’ political godson, the economist was a kind of “supersecretary” of Government in the second term of the mayor, ended in 2016. That year, he tried to be elected to succeed the ally in the Rio Executive, but he was in third place in the first round.

In the Federal Chamber, Pedro Paulo is the author of the Proposed Amendment to the Constitution (PEC) 438/2018, known as the PEC of the triggers, due to the expenditure containment mechanisms that he plans to activate when there is a risk of uncontrolled public spending, and the Complementary Law (PLP) 101/2020, approved last year in Congress to renegotiate the debt of States and municipalities with the Union in exchange for adjustment measures.

Again Rio de Janeiro secretary sponsors the decrees that create working groups to elaborate proposals for pension reforms, aiming at the amortization of the actuarial deficit and the financial and actuarial rebalancing of the Special Pension Fund of the Municipality of Rio de Janeiro (Funprevi), and the municipal tax system. A third group was responsible for drafting a bill with “permanent and emergency measures” to control the growth of expenses in the Executive and Legislative branches.