Brazilian municipalities to receive R$ 2.8 billion in FPM transfers

Brazilian municipalities are set to receive R$ 2.8 billion this Friday, September 18, as part of the second decennium of the Municipal Participation Fund (FPM). This figure represents a significant increase compared to the R$ 1.5 billion transferred during the same period last year.

Public budget specialist Cesar Lima attributes this growth to two primary factors: an atypical and negative performance in the previous year that required legislative compensation, and rising oil prices, which have boosted federal revenue through increased corporate income tax from the petroleum sector. The FPM is funded by portions of the Income Tax (IR) and the Tax on Industrialized Products (IPI), with distributions determined by the Federal Court of Accounts (TCU) based on municipal population data.