The city of Cuiabá has declared a state of financial emergency as Mayor Abilio Brunini (PL) signed a decree aimed at confronting the significant fiscal challenges left by the previous administration. The emergency declaration, published on January 3, 2025, allows for drastic measures, including reducing government expenses by 40%, the reassessment of contracts, and the introduction of new oversight committees.
Brunini's directive unveils the troubling financial realities facing the city: the previous mayor, Emanuel Pinheiro (MDB), has left Cuiabá with over R$ 1.6 billion in debts. This figure emerged as part of the extensive audit and evaluation set to happen over the decree's maximum duration of 180 days, which could potentially be extended should conditions warrant additional scrutiny. During this time, city officials plan to negotiate existing contracts, revise spending budgets, and establish support structures to stabilize fiscal management.
"The situation is grave," Brunini remarked during interviews following the decree's announcement. "We’ve witnessed expenditures soar by 135% compared to just 115% growth in municipal revenues from 2016 to 2024. This disparity has caused our budget to buckle under the weight of unsustainable fiscal obligations."
One of the most pressing issues identified is the unpaid salary obligations totaling around R$ 102 million for city employees as of December 2024. This outstanding amount is part of the wider financial deficit of R$ 518.7 million, with R$ 369.6 million of these expenses yet to be cleared, indicating serious liquidity issues for the municipal budget.
The emergency measures come as municipal finance management faces liabilities exacerbated by irregular payments made just before Brunini took office. According to reports, more than R$ 10 million was allocated to immediate expenses on the first day of Brunini's term, adding to the city’s fiscal strain.
Brunini, who won the mayoralty with 53.80% of the votes (171,324), now has the considerable task of managing the upcoming budget for 2025, which amounts to R$ 5.4 billion. He emphasized the need for trimming down unnecessary expenditures to prevent potential service disruptions.
"If we must pay the two payrolls within the same month without implementing cuts, we risk jeopardizing funding for healthcare and other fundamental services. This budget simply cannot sustain those expenses," Brunini stated, highlighting the necessity for radical austerity measures.
Indeed, one of the strategies Brunini plans to enforce is eliminating R$ 100 million from what he describes as superficial expenditures and poorly managed contracts within the first three months of his governance. The mayor also announced plans for emergency audits scheduled to provide detailed assessments of the city's financial state within 90 days.
Adding to the list of changes during Brunini’s initial week, the city government suspended the charges for visiting the recently reopened Aquário de Cuiabá, which had originally set the entry fees at R$ 20 for general and R$ 10 for half-price tickets. This move reflects Brunini's focus on prioritizing citizens’ access to municipal amenities amid economic struggles.
Overall, the current administration's immediate goal is to stabilize finances and regain public trust, shaken by the discoveries of financial mismanagement under the previous government. These drastic measures represent not just attempts to pull Cuiabá back from the brink of fiscal insolvency but also efforts to build a more sustainable economic environment for its residents.
Brunini's received support from various sectors as he embarks on this challenging endeavor. The proposed plan includes forming a crisis committee, composed of representatives from the Finance, Planning, and Administration secretariats, tasked with monitoring and advising on the municipality's financial rehabilitation.
The coming months will be pivotal for Cuiabá as it navigates this financial storm. With the mayor's commitment to transparency and responsibility, stakeholders are hopeful for reforms to prevent future crises and promote fiscal health.