President of Brazil Luiz Inacio Lula de Silva signed a statement on Monday, asking the country’s Congress to recognize a state of public calamity in Rio Grande do Sul. This region located in the southern part of Brazil is facing dire conditions due to massive floods causing considerable damage, and the state of public calamity is to be recognized until December 31, 2024.
The Brazilian legislative system’s lower house, the Chamber of Deputies, approved this request on the same day. However, approval is still pending from the Senate for the decree to become effective. Arthur Lira, the Chamber President, stated that the subsequent step post the decree’s adoption will involve invoking the Governor of Rio Grande do Sul. The goal will be to initiate required measures and release extraordinary credit to facilitate quick reconstruction of the state.
If the state of public calamity gets approved, it would allow the government to allocate expenditure and use federal resources exclusively for the Rio Grande do Sul region. It will not be under the purview of the restraining provision within the framework of the 2024 fiscal target. This fiscal scheme was implemented by the Brazilian government as a solution to control the potential increase in public debt.
The discussed legislative decree draws its basis from Article 65 of the fiscal responsibility law. It facilitates the fund transfer to the flood-affected cities to finance relief operations and provide aid to victims, restore essential services, and infrastructure, bypassing certain administrative responsibilities, including tax obligations.
Since April 27, Rio Grande Do Sul has been grappling with torrential downpours that have resulted in 85 deaths till now and displaced approximately 150,000 people. 111 individuals are reportedly missing, as stated by the country’s Civil Defence. The deluge also led to the destruction of several bridges and roads in multiple municipalities, causing loss of power and communication systems. Eduardo Leite, the state’s governor, stated that the severity and extent of the devastation experienced by the flooded region are unparalleled, and a “Marshall Plan” is necessitated for reconstruction.
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