Rio May Not Pay Back Debt to the Federal Government

The solution would be to invest in the technological modernization of the Treasury, expanding the fight against tax evasion and verifying the calculated amounts of incentives.

By Richard Mann, Contributing Reporter

RIO DE JANEIRO, BRAZIL - Even if the Fiscal Recovery Regime (RRF) is renewed until 2023, the debt of the State of Rio de Janeiro with the Union is unpayable unless there is a structural change in the economy of Rio de Janeiro, according to State Secretary for the Treasury Luiz Claudio Rodrigues de Carvalho.

By the end of 2023, gross indebtedness is expected to reach R$ 170 billion, the equivalent to 237 percent of Net Current Revenue (RCL). The ceiling defined by the Fiscal Responsibility Law (LRF) is 200 percent of the RCL and the . . .

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