✓ verbatim from the press
The São Paulo State Court of Accounts unanimously approved, on June 17, 2026, Governor Tarcísio de Freitas's (Republicans) 2025 accounts, but raised reservations about tax waivers, pension management, and oversight of services granted to the private sector. The opinion was drafted by auditor Marco Aurélio Bertaiolli. ✓
Press quotes (1)
"O Plenário do TCE-SP (Tribunal de Contas do Estado de São Paulo) aprovou nesta 4ª feira (17.jun.2026), por unanimidade, a prestação de contas de 2025 do governador de São Paulo Tarcísio de Freitas (Republicanos-SP). Apesar da aprovação, foram feitas ressalvas sobre as demonstrações contábeis, a gestão previdenciária dos servidores estaduais e o alto volume de renúncias de receita."
According to Bertaiolli's opinion, 25 large debtor companies accumulated R$ 3.9 billion in arrears with the state while simultaneously receiving R$ 12.2 billion in tax waivers. The audit also identified that 3,301 companies registered for ICMS exemptions or reductions were simultaneously listed in CADIN (Registry of Unpaid Credits). ✓
Press quotes (2)
"Entre elas, 25 grandes devedoras acumulavam R$ 3,9 bilhões em dívidas com o Estado, enquanto usufruíam de R$ 12,2 bilhões em renúncias fiscais."
"Segundo o relatório, 3.301 empresas que recebiam isenções ou reduções de ICMS estavam, ao mesmo tempo, cadastradas no Cadin (Cadastro Informativo dos Créditos Não Quitados)."
TCE-SP projected that tax waivers should grow 6.26% annually between 2026 and 2028, jumping from R$ 83.05 billion to R$ 93.77 billion — a pace higher than the government's revenue growth, estimated at 5.78% per year. The report noted that approximately 1% of companies registered as beneficiaries concentrate roughly 80% of all tax benefits. ✓
Press quotes (2)
"Eles esperam que de 2026 a 2028 as renúncias saltem de R$ 83,05 bilhões para R$ 93,77 bilhões, um crescimento de 6,26% ao ano. O ritmo é maior do que a arrecadação do governo, que deve ser de 5,78% ao ano."
"A relatoria ainda detectou que cerca de 1% das empresas cadastradas como beneficiárias ficam com aproximadamente 80% de todos os benefícios tributários."
The rapporteur ordered an end to confidentiality for cases involving tax benefit concessions to companies — the government will have to disclose the CNPJ of all beneficiaries — and recommended that the São Paulo administration avoid constant reprogramming of fiscal targets. Bertaiolli also warned that the state's oversight structure has not kept pace with the acceleration of public service concessions to the private sector and partnerships with the third sector. ✓
Press quotes (2)
"A partir da constatação, Bertaiolli determinou o fim do sigilo para os casos que envolvem concessão de benefícios fiscais a empresas. Desta forma, o governo terá que divulgar o CNPJ de todas as empresas beneficiadas. Além disso, recomendou que a gestão paulista evitasse reprogramações das metas fisicais de forma constante"
"Bertaiolli também apontou deficiências na fiscalização de contratos de rodovias privatizadas e cobrou um maior controle do governo paulista sobre os serviços que foram concedidos à iniciativa privada e em hospitais geridos por organizações sociais."
Despite complying with the Fiscal Responsibility Law limits for personnel spending and debt, TCE-SP expressed concern about expenditure trends and the weight of pensions: the ratio between current revenues and expenditures reached 92.43% in 2025, approaching the constitutional ceiling of 95%. The opinion now moves to the São Paulo State Legislative Assembly (Alesp), which will conduct the political review of the accounts. ✓
Press quotes (1)
"Apesar de cumprir com os limites estabelecidos pela Lei de Responsabilidade Fiscal para gastos com pessoal e endividamento, o TCE demonstrou preocupação com a evolução de despesas e o peso da previdência. Segundo a Corte, a relação entre receitas e despesas correntes chegou a 92,43% em 2025, se aproximando do teto permitido pela Constituição, em 95%."
TCE-SP unanimously approved Governor Tarcísio de Freitas's 2025 accounts on June 17, 2026, with reservations
Reservations included financial statements, pension management, and high volume of revenue waivers
Marco Aurélio Bertaiolli was the auditor who drafted the opinion
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (3)
Bertaiolli ordered an end to confidentiality for cases of tax benefit concessions to companies, requiring disclosure of CNPJs
The 2023 and 2024 reports, also referring to Tarcísio's accounts, were likewise approved with reservations about waivers and pensions
TCE-SP noted that the state's oversight and regulation did not keep pace with the growth of concessions and partnerships, without efficient structure to regulate targets and results
-
Which are the 25 debtor companies identified by TCE-SP that received R$ 12.2 billion in tax waivers?
Why it's still unknown: Bertaiolli's opinion pointed out the existence of the companies and aggregate amounts, but no source disclosed the nominal list. The order to end confidentiality will allow future disclosure of CNPJs of all beneficiaries, but it is still unclear when this list will be published.
-
What is the current party composition of Alesp and what is the historical probability of rejection of state accounts approved with reservations by TCE-SP?
Why it's still unknown: Consulted sources did not detail the subsequent process in the Legislative Assembly — composition of the accounts committee, voting history of TCE-SP opinions over the last two decades, or precedents of technical reservations that resulted in political rejection. The opinion is advisory; the final decision rests with Alesp.
-
What distinguishes the 2025 reservations from the reservations noted in the 2023 and 2024 opinions, also approved with reservations?
Why it's still unknown: Poder360 mentioned that the 2023 and 2024 reports were likewise approved with reservations about waivers and pensions, but no source offered detailed technical comparison — whether the problems identified in 2025 are recurrences of the same findings or if there are new categories of failures.
Did not cover: CNN Brasil -
What is the current oversight and regulatory structure for concessions and partnerships of the São Paulo government, and how does it differ from what TCE-SP would consider adequate?
Why it's still unknown: Bertaiolli warned that the state's structure has not kept pace with the acceleration of concessions, but no source quantitatively described the staff dedicated to oversight, the traceability instruments used, or the benchmark TCE-SP considers necessary.