Federal support for Rio Grande do Sul exceeds BRL 85 bi
In just one month of operation, the Extraordinary Secretariat for the Reconstruction of Rio Grande do Sul has accounted for BRL 85.7 billion invested by the Brazilian government. These funds have been allocated to various relief and support measures for the population, entrepreneurs, and state and municipal administrations since the beginning of the public calamity in the state at the end of April this year.
In a report released on Monday (Jun. 17), the Secretariat detailed the efforts of 30,000 professionals from the Armed Forces and security forces associated with the Ministry of Justice and Public Security. Their combined efforts contributed to the rescue of 89,000 people and 15,000 wild, domestic, and livestock animals.
According to the report, the Armed Forces and the National Force of Brazil’s public healthcare network, the SUS, have constructed 13 field hospitals, which have already treated 15,000 patients. The Ministry of Health has dispatched 8 million medicines and supplies to the state, and 21,000 people have been immunized against influenza. Additionally, BRL 282 million has been allocated to support healthcare services and maintain ongoing care.
Through Reconstruction Aid, BRL 5,100 has been provided to each family directly affected by the rains and floods, helping them to resume normal activities in their homes. To date, over 100,000 people have received this one-off transfer, totaling more than BRL 663 million in disbursements. On the housing front, a plan has been launched by the state to purchase ready-made houses, both new and second-hand, to donate to homeless families. Additionally, the Minha Casa Minha Vida/Reconstruction cash transfer program is now accepting housing applicants.
This month, the Brazilian government added 21,700 families to the Unified and Expanded Bolsa Família program, bringing the total number of beneficiary families in Rio Grande do Sul to 658,000 for the June disbursement.
Support for companies
The secretariat's balance sheet also highlights support for companies:
A provisional measure has authorized three lines of financing totaling BRL 15 billion for companies in areas impacted by the public calamity. These loan lines are intended for contracting services, purchasing machinery and equipment, financing projects, and supporting working capital.
The National Support Program for Micro and Small Businesses (Pronampe) has provided emergency support, lending BRL 1.3 million to 13,000 entrepreneurs who suffered losses in their businesses. This credit comes with a 40 percent subsidy from the federal government and a 24-month grace period.
In addition to the measures already mentioned, 434,000 formal workers will receive a minimum wage for July and August. Furthermore, BRL 1.7 billion has been released to 538,000 workers who opted to withdraw their Calamity Payment from their pension fund (FGTS), and an additional BRL 11 million will be allocated to provide two extra installments of unemployment insurance for 6,636 workers.
A significant development was the three-year suspension of Rio Grande do Sul's debt repayment to the Federal Government, freeing up BRL 11 billion for the state's reconstruction fund. Additionally, BRL 12 billion in interest on the total debt was forgiven. This support facilitated emergency works and the reconstruction of damaged structures, made possible by the transfer of over BRL 12.1 billion to the municipalities affected by the floods.
Coordination
The Extraordinary Secretariat for the Reconstruction of Rio Grande do Sul, created by President Luiz Inácio Lula da Silva, marked its one-month anniversary on Saturday (15). The secretariat is under the leadership of Minister Paulo Pimenta, head of the president’s Communication Secretariat.
The secretariat serves as the central coordinating body for 17 ministries involved in the recovery efforts of Rio Grande do Sul, which was affected by heavy rains last month, resulting in flooding in cities and damage to houses, bridges, and highways. Operating at the status of a ministry, its primary mission is to accelerate the state's recovery process by fostering collaboration between the federal government, the state government, and municipal authorities.
Commenting on the state's current situation, Pimenta expressed his belief that everyone will emerge from this challenge "stronger, more united, and more organized."
The recent heavy rains have left a trail of destruction, with 176 fatalities and 806 injuries reported across several municipalities in Rio Grande do Sul. Tragically, 39 individuals remain missing. The storms have had far-reaching impacts, affecting residents in 96.17 percent of the state's cities and impacting over 2.39 million inhabitants.
