A report from the Secretaria de Estado de Fazenda (SEF-MG) to the National Treasury indicates that Minas Gerais commenced 2026 without any cash reserves, facing the worst fiscal situation among all Brazilian states. The consolidated public accounts for 2025 reveal that the state's net cash availability is over R$ 11 billion in the red, a troubling sign of financial distress as it reflects what remains after accounting for obligations.

In addition to this severe cash shortfall, the report outlines other key financial indicators, including personnel expenses, total debt, and payment capacity. The forecasted deficit for 2026 is estimated at R$ 5 billion. Renowned economist Gelton Pinto Coelho emphasizes that this economic landscape requires careful navigation, particularly since the state government has recently approved around R$ 25 billion in tax exemptions for companies, significantly reducing potential revenue.

This fiscal crisis places Minas Gerais in a precarious position, highlighting issues of governance and financial management that could have far-reaching implications for its economic recovery and public services. Ensuring fiscal responsibility while managing necessary public expenditures will be crucial as the state grapples with its financial challenges in the upcoming years.