RN is the 2nd most indebted state in the country and exceeds personnel spending limit, says Ministry of Finance
Rio Grande do Norte has become the second-most indebted state in Brazil, surpassing the legal limit for personnel expenditures.
The state of Rio Grande do Norte is currently facing a significant financial crisis, being reported as the second most indebted state in Brazil as of 2025. According to the Ministry of Finance's Fiscal Management Report, the state's total debts have reached over three billion reais, only trailing behind Minas Gerais. This alarming financial position demonstrates the state's struggle with mismanagement and fiscal imbalance.
Furthermore, the state has exceeded the legal limit on personnel spending; currently personnel expenditures account for 56.41% of the state's net revenue, while the Fiscal Responsibility Law sets a threshold of 49%. This breach of fiscal responsibility laws could lead to severe consequences, including suspension of federal transfers and restrictions on obtaining loans. The need to comply with these fiscal regulations is crucial for the state to stabilize its finances.
Experts highlight that addressing the revenue collection issue without raising tax burdens presents a significant challenge. Improving financial organization and efficiency in resource management are essential steps for Rio Grande do Norte to recover from its current fiscal crisis. The government will need to explore innovative strategies to boost earnings while ensuring regulatory compliance to avoid further penalties.