Rio Grande do Norte Exceeds Payroll Cap at 55.73% of Revenue, Tesouro Reports

Overview

• Rio Grande do Norte was the only state above the Fiscal Responsibility Law’s 49% ceiling in the May–August 2025 report, reaching 55.73% for the Executive branch.
• Payments to retirees and pensioners accounted for 38% of gross personnel expenses, one of the highest shares in the country.
• Court-ordered debts (precatórios) equaled 25% of net current revenue, the second-highest ratio nationally behind Rio Grande do Sul.
• A recent constitutional amendment replaced the old 2029 deadline with an annual payment cap of 2% of net current revenue for precatórios.
• The state’s Judiciary, Legislative and Public Ministry remained within their legal personnel spending limits, according to the report.