São Paulo Tribunal de Contas flags fiscal gaps in 2025 state accounts
The Tribunal de Contas do Estado de São Paulo (TCE‑SP) unanimously approved Governor Tarcísio de Freitas' 2025 accounts but issued extensive reservations. The audit cited a “parallel budget” of tax exemptions, projecting revenue losses of R$ 83 billion in 2026 rising to R$ 94 billion by 2028, and warned of a R$ 12.2 billion deficit for 2025. It highlighted opaque handling of ICMS credit reimbursements, noting thousands of companies receiving credits without supporting sales and a concentration of R$ 21 billion in credits among just 52 firms, suggesting possible fraud. The report also criticized the Finance Secretary’s secrecy on exemption data, lax supervision of privatized road contracts, and insufficient control over private‑run hospitals. The TCE called for publication of exemption data by CNPJ and tighter state oversight of public‑service contracts.