Announced in November by Minister of Economy Paulo Guedes, the Mais Brasil Plan includes three Constitutional Amendment Proposals (PEC) aimed at balancing fiscal accounts at the federal, state, and municipal levels. Among them is the dissolution of municipalities that are not financially self-sustaining.
The Federative Pact PEC, under the banner of “a fiscal culture of austerity and sustainability,” envisions the dissolution of municipalities that generate less than 10% of their own revenue and have a population under 5,000. With estimated savings of R$ 500 million, it is projected that approximately one thousand municipalities would be merged with neighboring territories.
