Overview
- Rio de Janeiro stays in the Fiscal Recovery Regime for six more months or until it joins the new federal debt program, Propag.
- For the first half of 2026, installments must include unpaid 2024–2025 amounts plus the R$4.9 billion baseline, all updated by IPCA.
- The Union’s 30‑percentage‑point increase on the state’s debt service remains suspended under the interim order.
- Toffoli pressed for concrete steps toward Propag; the state assembly approved enabling legislation, but the governor has yet to finalize adhesion before the Dec. 31 deadline.
- The federal Treasury cites rising personnel expenses as noncompliance while the state blames ICMS cuts for weaker revenue, with consolidated debt reported at about R$232.5 billion.