Justice blocks R$ 19 million and Várzea Grande City Hall declares financial calamity

The measure comes after a judicial blockade of R$19 million from the municipality's accounts due to the non-payment of three installments of court orders. The decision affected transfers from ICMS and the Municipal Participation Fund (FPM), two of the City Hall's main sources of revenue.

According to municipal management, Várzea Grande faces a debt of almost R$1 billion in court orders. Currently, paying these debts consumes around R$6 million per month from public funds.

In addition to court orders, the municipality has accumulated tax outstandings of R$19.4 million and R$36 million, a situation that prevents the issuance of tax certificates and makes it difficult to receive new federal resources.

DAE also goes into calamity

The most critical situation involves the Várzea Grande Water and Sewage Department. According to data presented by City Hall, the municipality has an immediate deficit of R$28.7 million and a debt of R$172.2 million with the electricity concessionaire.

The DAE also accumulates R$314 million in its own court orders and stopped collecting R$158.8 million in active debt. The agency's financial situation raised alarms about the risk of compromising water supply services in the municipality.

Mayor cites blocked amendments

During a meeting with the secretariat, Flávia Moretti attributed part of the financial difficulties to the blocking of parliamentary amendments in the municipal legislature. According to her, resources that could help the administration would be blocked in the City Council.

The mayor stated that, given the situation, management needed to use its own resources to maintain public expenses.

Cost cutting

With the calamity decrees, the City Hall enters into a cost containment regime. New hiring, purchasing of goods, creating new expenses and holding festivities are prohibited.

Municipal secretaries will have five days to present cut plans. The management's priority, according to the decrees, will be to maintain payroll payments and essential services, mainly in the areas of health and education.

The municipal administration states that the measures are necessary to reorganize public accounts and guarantee the continuity of basic services to the population.