March 22, 20 - 3:40 pm - LABS

Brazilian states urge federal government for assistance during crisis

Finance departments of the 27 Brazilian states insisted on Saturday that they need immediate assistance from the federal government. All secretaries signed a letter asking for BRL14 billion ($2.76 billion) per month to counterbalance the sharp drop in state-level tax revenues due to the coronavirus crisis.

They also ask for an additional BRL 5 billion ($990 million) over three months for emergency health actions. The request had already been made on Wednesday (18).

They claim that, across the world, there are already a number stronger initiatives. “The European Union, in an unprecedented way, has triggered a ‘panic clause’ that releases public spending. The UK has reserved £330 billion, 15% of its GDP, in measures that will include the payment of 80% of employees’ wages in the private sector”.

The Brazilian state secretaries warn they need time to act before the announced collapse of the country’s health system, predicted by the Ministry of Health for April.