Moro reacts to states' resource cut: "We do not accept fiscal adjustment at Paraná's expense"
Elected governor criticizes provision of PLP 299/2026 that reduces resources from the Kandir Law. Preliminary calculations indicate Paraná would lose R$ 604 million in transfers during the measure's validity
The senator and governor-elect of Paraná, Sergio Moro (PL), said on Thursday (12) that he is in favor of the fiscal adjustment of the federal government, as long as the measures are based on the cut in spending, and not on the reduction of resources destined for the states. Moro criticized the Complementary Law Bill (PLP) 299/2026, under discussion in the Federal Senate, which provides to decrease the transfers of the Union regarding the compensation of the Kandir Law. According to him, the proposal harms all Brazilian states, especially Paraná, São Paulo, Minas Gerais, Rio Grande do Sul and Rio de Janeiro.
“We are in favour of the federal government’s fiscal adjustment, but through spending cuts. Let's go to Paraná, by the way, do our part and decrease secretaries. We do not agree, however, with fiscal adjustment through violation of the law of states and their citizens,” Moro said in a post on social networks.
The senator also announced that he will work to remove from the bill the device that alters the transfers of the Kandir Law. “The PLP 299/2026 cuts transfers of the Kandir Law and harms all Brazilian states, but especially the Paraná, São Paulo, Minas Gerais, Rio Grande do Sul and Rio de Janeiro. This part of the PLP needs to be suppressed. I will vote for the suppression or against the whole project,” he said.
Paraná could lose $604 million
Preliminary calculations indicate that the Paraná may lose approximately R$ 604 million in transfers during the period of validity of the measure. The impact stems from the reduction of the values that would be transferred by the Union in the coming years, compromising the availability of resources for the financial planning of the State and the municipalities.
Reduction of R$ 3 billion per year
One of the most questioned points of PLP 299/2026 is the change in the schedule of financial compensations provided for in the Kandir Law. According to the text, the annual transfers of the Union to the states, the Federal District and the municipalities would fall from R$ 4 billion to R$ 1 billion by 2030. The difference would be redistributed between the years 2031 and 2037.
Although the project maintains the global amount of R$ 58 billion provided for in the legislation, the lower anticipation of resources compromises the financial flow of state and municipal governments. In practice, federal entities will have less money available in the coming years to plan investments, cost public services and meet budget commitments.
Moro's amendment
This Thursday (12), Moro presented Amendment 19 to PLP 299/2026, proposing to suppress article 2 of the draft, precisely the device that reduces the annual transfers of the Kandir Law.
In the justification, the senator argues that the change compromises the predictability of state and municipal revenues, undermining the financial planning of governments. It also highlights that the delay in payments produces economic losses, considering inflation and the opportunity cost of resources.
The vote on the PLP 299/2026, initially scheduled for Wednesday (11), was transferred to this Thursday (12), after questions from parliamentarians about the urgency of analysing the text.
Read also: Government releases use of reserve of R$ 5 million from bets to return money to bettors
