Brasília – The Brazilian president Dilma Rousseff has made 1.95 billion reals (US$ 1 billion) for the country’s states, Federal District, and municipalities. The intention is to foster and encourage exports from the country. The decree was issued under Provisional Measure 546, published on section 1, page 6 of the Official Gazette this Friday (30).
The funds will be issued by the National Treasury and the Ministry of Finance in three instalments of 650 million reals (US$ 355 million) by the last working day of October, November and December. States will be allocated 75% of the total, and the remaining 25% will go to municipalities.
The measure also rules that the Ministry of Finance will be entitled to setting forth rules for states and the Federal District to report on the maintenance and use of credit by exporters.
The decree provides that funds will be passed on municipalities based on the allotment criteria for instalments of the Tax on Circulation of Goods and Services (ICMS) to their respective states throughout the year. The funds will be delivered once a month, up until September, through cash deposits in bank accounts.
The president’s ruling comes at a time when she has expressed her concern over the impact of the international economic crisis on Brazil. According to Dilma, no country is immune to the crisis, but the Brazilian government is working to prevent losses.
One of the efforts underway, according to the president, is providing stimulus to the national industry by creating jobs and generating income. To her, foreigners willing to invest in Brazil will have support, provided that they guarantee that new jobs will be created and income will be generated in the country.
*Translated by Gabriel Pomerancblum
