Pandemic has cost São Paulo City Hall US$1.1 billion this year

RIO DE JANEIRO, BRAZIL – The impact of the Covid-19 pandemic on São Paulo’s City Hall accounts has now reached R$6 (US$1.1) billion. The amount represents the total spending in health care and social programs through the month of May.

The figure is 25% higher than the total estimated for new investments in 2021, which pressures the budget, consumes part of the surplus accumulated in other years and advances on extraordinary revenues, such as the payment of debts in installments by taxpayers.

With 77 goals to be met by 2024, the current administration – now under the command of Mayor Ricardo Nunes (MDB) – has reallocated funds intended to pay for the opening of new hospital beds, the delivery of food baskets to the most vulnerable population, and the purchase of tablets for students in the municipal network to monitor remote learning.

There is also pressure to increase the transportation subsidy by more than R$600 million.

The most impacted area is obviously Health. After witnessing the cost of such services grow from R$8.8 billion to R$11 billion (in committed values) last year, the upsurge of the pandemic demanded new emergency supplements and the forecast is to close this year with R$12 billion in commitments – 22.5% more than the initial budget.

Source: Exame