Mato Grosso Governor Pivetta announces administrative reform to save R$ 1 billion

Mato Grosso Governor Otaviano Pivetta has announced a major administrative reform aimed at reducing state expenditures by up to R$ 1 billion annually. The plan, being developed by a ten-person technical working group including Vice-Governor-elect Gisela Simona, is expected to be presented by the end of next week. The reform seeks to modernize the state structure, reduce bureaucracy, and reorganize secretariats to create a more efficient government.

The initiative comes in response to a projected R$ 6 billion revenue decline in the State Fund for Transport and Housing (Fethab) over the next four years, averaging a R$ 1.5 billion annual loss. To mitigate this fiscal pressure and maintain investments in infrastructure, sanitation, and housing, the government may seek low-cost loans. Former Finance Secretary Rogério Gallo noted that the state currently maintains a negative net debt, as cash reserves exceed total debt, providing capacity for strategic financing.

While the governor has not confirmed a Voluntary Dismissal Plan (PDV), he indicated that personnel structures will change and some staff may be dismissed. Regarding the upcoming administration starting in 2027, Pivetta intends to retain several key technical figures from the current cabinet, including Laice Souza (Communication), Marcelo de Oliveira (Infrastructure), Fábio Pimenta (Finance), and Mauren Lazzaretti (Environment).