# Brazilian election debates over state finances > Live situation record from CLSTR: https://clstr.news/situations/brazilian-election-debates-over-state-finances > Updated: 2026-08-24T21:45:06.000Z. Sources: 15. Developments: 2. During the Brazilian election cycle, political candidates have focused their campaigns on the fiscal management and debt levels of major states. In Minas Gerais, President Luiz Inácio Lula da Silva attributed the state’s R$ 179 billion debt to the Michel Temer administration and criticized Governor Romeu Zema for failing to make payments to the federal government. In response, Zema argued that the debt originated in the 1990s and has been exacerbated by what he described as “juros de agiota” (usury-like interest) from the federal government, though he noted an improvement in the debt-to-revenue ratio. In São Paulo, gubernatorial candidate Fernando Haddad criticized the financial management of Tarcísio de Freitas, alleging a shift from a surplus to a deficit and a loss in investment capacity. Haddad proposed a “pente fino” (thorough review) of state contracts and concessions to restore budgetary space. ## Timeline ### 2026-08-24: Brazilian candidates debate state finances in Minas Gerais and São Paulo Brazilian political candidates Romeu Zema and Fernando Haddad have raised concerns regarding the fiscal management and debt levels of the states of Minas Gerais and São Paulo. 12 sources. https://clstr.news/cluster/brazilian-candidates-debate-state-finances-in-minas-gerais-and-so-paulo ### 2026-08-20: Lula criticizes Temer and Zema during Minas Gerais campaign visit President Lula criticized the Temer administration for Minas Gerais' debt crisis during a campaign visit, while other Brazilian leaders held rallies in Rio Grande do Norte and Piauí. 3 sources. https://clstr.news/cluster/lula-criticizes-temer-and-zema-during-minas-gerais-campaign-visit --- Cite as: Brazilian election debates over state finances. CLSTR, https://clstr.news/situations/brazilian-election-debates-over-state-finances