Poços de Caldas faces budget challenges and payment delays

The municipality of Poços de Caldas, Minas Gerais, is navigating significant financial difficulties. During a public hearing, officials presented a proposed budget of R$ 1.777 billion for 2027. However, concerns were raised regarding revenue falling below projections, rising expenses, and a reliance on R$ 176 million in credit operations to fund investments.

In 2025, the city collected approximately R$ 1.396 billion against a projected R$ 1.8 billion. Similar concerns persist for 2026, where revenue reached only 60% of the adjusted fiscal goal by August.

Compounding these fiscal pressures, the municipal government has acknowledged delays in transferring funds to social assistance entities. While partial payments for July and August were made in mid-October, some institutions, such as the Association of Parents and Friends of the Exceptional (Apae), face ongoing delays. These delays impact the maintenance of services for nearly a thousand people, as municipal transfers sustain more than 50% of Apae’s operational costs.