With accounts in order, Rio City Hall sends a budget of R$40 billion for 2022 to the Chamber

The Rio de Janeiro City Hall sent, on Thursday night (30), the 2022 Annual Budget Bill with a forecast of revenues and expenses in the order of R$ 39,8 billion reais. The amount is 28% higher than the amount forecast in 2021, of R$ 31 billion. With the accounts in the black, the city expects an investment rate of 5,9% next year, the equivalent of R$ 2,4 billion – three times more than in 2020 and 2021.

The planned expenses focus on improvements to the city and improving services for Rio residents in several areas. The project sent to the Legislature foresees an increase of R$4,6 billion in operating expenses compared to the budget for 2021.

– We are talking about a cost-investment, because it will not only be aimed at taking care of what we call the 'caretaking' of the city, but also at improving health, education and social assistance services for the people of Rio – says the Municipal Secretary of Finance and Planning, Pedro Paulo.

The Health sector will receive R$2,6 billion more than the 2021 budget, with the aim of strengthening the primary care network, which has pent-up demand for specialized outpatient consultations, procedures and complementary exams. The current scenario is a result of the dismantling suffered between 2017 and 2020, aggravated by the effects of the Covid-19 pandemic. In Social Assistance, the budget foresees an increase of more than 35% with a focus on a series of projects, including increasing the number of people served by the income transfer program.

Education will receive a boost of R$1,3 billion with projects aimed at recovering the educational gap left by more than a year of social isolation and closed schools. “This is an effort to provide Rio residents with the care they deserve, prioritizing those most affected by the pandemic,” explains Pedro Paulo. “Other essential departments for the maintenance of the city will also receive significant increases, such as Conservation, Infrastructure, Comlurb, and Parks and Gardens.

The bill submitted to the Legislature reflects the efforts to raise revenue and contain expenses led by the Municipal Department of Finance and Planning, headed by Pedro Paulo. One of the control measures adopted is personnel expenses. The current administration took over Rio with Executive Personnel Expenses corresponding to 56,24% of Net Current Revenue, therefore above the 54% limit established by the Fiscal Responsibility Law. In less than a year, the adjustment in the accounts allowed the municipality to return to the prudential limit, with Personnel Expenses at 48,7%, according to the Fiscal Management Report.

Order in the house
In January, the current administration took over the city with only R$12 million in cash to pay debts in the order of R$6 billion. These debts included the December payroll and the 13th salary of 2020 for Rio's civil servants. Today, the city has already settled the salary owed by the last administration and paid more than half of the 13th salary that was left outstanding.

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October 1th, 2021

Appointments: town hall Farm budget City Hall of Rio Rio de Janeiro City Hall