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Government of São Paulo had a surplus of R $ 7.7 billion in 2020, and the opposition talks about exaggerated cuts

Publicado em 04 fevereiro 2021

Por Folha de S.Paulo

The São Paulo government had a budget surplus of R $ 7.7 billion in 2020, which contrasts with the deficit of R $ 553.9 million in 2019, and ended the year with R $ 14.6 billion in cash.

“They tightened up a lot and got their accounts wrong. It is the story of the medicine and the poison,” says deputy Paulo Fiorilo (PT), who defends that the resources be used in post-pandemic programs for the poorest population.

The João Doria government (PSDB) has clashed with different sectors of society since last year due to rehearsed or promoted cuts. He tried to cut more than R $ 454 million in revenues from FAPESP (São Paulo Research Foundation), but gave up after intense pressure.

Adjustments in tax collection in various areas have sparked protests. Senator Mara Gabrilli (PSDB) spoke of “cruelty” commenting in an interview with leaf cutting the IPVA exemption in 2021 for 80% of people who declare themselves to be disabled.

The João Doria (PSDB) management states that the surplus is due to the suspension of the payment of the debt with the Federal Government and official financial institutions due to the pandemic, totaling R $ 14 billion in cost reductions that will resume in 2021.

“The surplus comes to cover the growing expenses in the areas of health, education, social assistance and security that will still persist due to the economic crisis caused by the pandemic and to face the demands already contained in the 2021 Budget”, he adds.

Through the press office, it states that ICMS revenue fell 2.9% in real terms and was around R $ 6.2 billion less than the revenue projected in the budget.

“The measures of containment of expenses were necessary in the face of an increase in spending in the health area and high uncertainty as to the consequences of the health crisis. São Paulo acted responsibly in making the fiscal adjustment and administrative and tax reform, giving conditions to face all challenges and increase their investment capacity to generate jobs and income “.