Economy Minister Paulo Guedes and Senate President Davi Alcolumbre have reportedly reached an agreement about a bill to grant financial aid to state administrations.
States will now have access to more aid — rising from BRL 77 billion to BRL 120 billion — half of which will be paid directly by the federal government. In exchange, states and municipalities must agree to freeze civil servants’ salaries until December 2021. The plan should be put to a vote on Saturday, May 2, in an online congressional sitting. The total amount of aid may be raised even further should states’ financial crisis worsen.
According to officials, the salary freeze would save BRL 130 billion over the next 18 months.
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