The Treasury says that 14 countries exceed the limit of personal costs – the front

The State Treasury Department announced on Tuesday (13) that 14 countries have exceeded the cost limit for staff set up by the Fiscal Responsibility Act. The law states that states can not invest more than 60% of revenues from these costs.

According to the financial bulletin of sub-legal entities in 2018, countries that violated this rule are Minas Gerais, Mato Grosso do Sul, Rio Grande do Norte, Rio de Janeiro, Rio Grande do Sul, Mato Grosso, Sergipe, Acre, Paraiba, Roraima, Parana , Bahia, Santa Catarina and Alagoas.

In the document, the Treasury says that the calculations were carried out in accordance with the Fiscal Restructuring and Adjustment Program, adapting to the extent possible to follow the concepts and procedures of the Manual for Fiscal Statements (MDF) and the Public Sector Accounting Manual (MCASP) "

However, the Secretariat notes that there is a difference in the methodology for calculating staff costs, sanctioned by a state court. "There are several criteria for calculating staff costs. In this regard, for example, some states do not consider, in their staff costs, some important items, such as costs with retirees, income tax retained, and employers' obligations.

In order to try to standardize the information, in March this year, the State Treasury Secretariat signed an agreement with the courts of state accounts. The goal is that all federal states use the same parameters to confirm compliance with, for example, the limits of the Fiscal Responsibility Act, such as staff costs. For the Secretariat, the lack of standardization makes it difficult to compare the fiscal situations of countries.

Restrictions provided for by the Fiscal Responsibility Act are those of countries that exceed the prudential limit (46.55% of net current income from staff costs). Restrictions apply to the allocation of adjustments (only increases are fixed by contracts and by the judiciary), staff recruitment (except for replacement of employees in health, education and security), payment of overruns and prohibition to change careers. Those who break the ceiling are also prohibited from borrowing, from obtaining guarantees from other Federation units for credit lines and obtaining voluntary transfers.