Governador Valadares reports rising expenses amid fiscal calamity

The municipality of Governador Valadares reported a significant imbalance between revenue and expenditure during a public hearing at the City Council. As of August 2026, municipal expenses grew by 12.21% compared to 2025, while revenue increased by only 2.81%.

Finance Secretary Thiago Henrique Ferreira noted that the municipality faces R$ 436.1 million in expenses that are either pending payment or yet to be liquidated. Additionally, there are R$ 76.9 million in unpaid balances from previous years. The administration has declared a state of financial calamity and is currently reviewing contracts and expenses to address the gap. The consolidated debt stands at R$ 261.9 million.