Brazilian State Rio Grande do Sul Seeks an Ambitious Recovery Plan

The state intends to change the legal framework for public servants and curtail tax incentives, in order to obtain assistance from the federal government.

By Xiu Ying

RIO DE JANEIRO, BRAZIL - The governor of Rio Grande do Sul (RS), Eduardo Leite (PSDB), decided to reverse the budgetary practices that characterized a decade of fiscal crisis in the state, and is about to introduce an ambitious plan to review government workers entitlements, cut tax incentives granted to companies, and reform the state pension plan.

For the first time since 2007, the state budget has been sent to the Legislative Assembly, showing a projected deficit. For the last 12 years, the state budgets always projected positive results, which allowed increased spending, but the annual results always . . .

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