Londrina implements fiscal plan to address budget deficit

The City of Londrina has announced a Fiscal Containment and Rebalancing Plan to address a significant budget deficit. Mayor Tiago Amaral reported that the administration inherited a R$ 300 million budgetary gap at the start of 2025. While R$ 220 million of that amount has already been addressed through contract contingencies, overtime reviews, and the sale of underutilized properties, the city still faces a projected deficit of approximately R$ 205 million for 2026.

The financial strain is exacerbated by a R$ 124 million drop in expected revenue due to reduced state and federal transfers. A major driver of municipal spending is the public transport subsidy, which is projected to reach R$ 177 million in 2026, up from R$ 37 million in 2022. To manage costs, the city plans to adjust intervals and reduce trips on deficit-heavy lines without eliminating service or free passes.

Additional measures include administrative reforms in partnership with the State University of Londrina (UEL) and fiscal justice initiatives such as the ‘Regulariza Londrina’ program and tax audits. The administration intends to re-evaluate these containment measures in 120 days.