Royalties: Municipalities use resources against COVID-19

Several oil royalty-producing cities are investing in health actions to combat the new coronavirus. They are concentrated in the states of Rio de Janeiro, Espírito Santo and São Paulo.

Maricá, in the Rio Lakes Region, for example, received more than R$ 1.6 billion from oil in 2019 and has already allocated about R$ 130 million of this amount for health, basic income and credit. Even Maricá and Niterói – second in the royalty ranking – invested about R$ 90 million in a new field hospital in the neighboring municipality of São Gonçalo – one of the cities with the lowest HDI (human development index) in the country.

Who also adopted important actions was the municipality of Ilhabela, on the north coast of São Paulo. The city has a cash of around R$ 215 million untouched, and invested R$ 25 million – left over from the 2019 cash fund – in creating a basic income and food stamp to mitigate the economic effects of the pandemic. The information is from the Secretary of Finance, Fernando Crésio.

On the other hand, municipalities in other cities that have received royalties in recent years, but have not been able to manage, suffer to try to organize the wrong expenses. This is the case of Campos dos Goytacazes and Macaé, in Rio and Itapemirim, in Espírito Santo, who spent their resources on unnecessary investments and now close their accounts in the red at a time of crisis.