Serra launches package to restrict crisis effects
O Estado de S. Paulo 02/13/2009
The Governor of São Paulo, José Serra (PSDB), announced several economic measures to try to attenuate the impact of the global crisis in the State of São Paulo yesterday. They are 17 measures involving, basically, the advancement of R$ 20.6 billion (US$ 9 billion) in funds from the 2009 budget, the tax release on the investments for some sectors, the improvement and opening of credit lines and the equalization of the interest rate in financings to the micro- and small-size companies. The measures were announced by former Governor and current Secretary of Development Geraldo Alckmin. They occur at a time in which the industry of São Paulo has just cut 7 thousand jobs in 2008 and two days after the PT (Labor Party) passed a resolution accusing the PSDB (Brazilian Social Democratic Party) and DEM (Democratic Party) Governments of not taking any measures against the crisis. The announced investments are already included in the 2009 Budget. There will be R$ 20.6 billion (US$ 9 billion), most of the investment will be focused on works in the area of transports (R$ 5 billion/US$ 2.2 billion) and sanitation (RS$ 2.5 billion/US$ 1.1 billion) and on the Subway and the São Paulo Metropolitan Train Company (RS$ 4.2 billion/US$ 1.8 billion). The purpose is to maintain or generate 858 thousand jobs. Last year, the investments of R$ 15 billion (US$ 8.2 billion) helped generating 630 thousand direct and indirect jobs. The government did not specify how many jobs will be generated. Among the announced measures there are also the advancement of Governmental purchases, the speeding up of improvements of schools and police station and the fall in the cost of fees of the Real Estate Registry intended to regularize the urban properties.