Rio Proposes 2027 Budget With R$13.9 Billion Shortfall

Overview

• The state government formally sent the 2027 budget proposal to Alerj on Sept. 30, forecasting R$138.37 billion in spending, R$124.39 billion in net revenue and a R$13.98 billion deficit.
• Officials say a set of measures valued at about R$11.88 billion could reduce the gap to roughly R$2.1 billion if those measures are approved and deliver the expected revenue.
• The PLOA assumes Rio’s adhesion to the federal Propag debt program and earmarks compensatory investments including R$1.3 billion for professional education, R$980 million for other programs and a R$2.16 billion contribution to the Fundo de Equalização Federativa.
• Several of the budget’s revenue items depend on judicial or arbitral outcomes, notably the release of special oil participations from fields such as Tupi and Cernambi, and on new state laws and debt repactuations that still require Alerj approval.
• Alerj has until mid-December to amend and vote the LOA and revised PPA, a process that will determine whether projected savings materialize and how the deficit and public services will be managed next year.