precatórios

Precatórios are court-ordered payment orders issued by a judge for the Brazilian government (federal, state, or municipal) to pay a debt owed to a person or entity. This debt typically arises from a final and unappealable court decision where the government was found liable for damages, unpaid salaries, or other financial obligations. The process of paying these debts is governed by specific constitutional and legal provisions in Brazil.

When a lawsuit against the government concludes with a favorable judgment for the individual or company, and all appeals have been exhausted, a precatório is issued. This document specifies the amount owed and the responsible government entity. Precatórios are then submitted to the judiciary for inclusion in the government's budget for the following year. However, due to the large volume and financial constraints, there are often waiting lists, meaning payments can take several years to be made.

There are also rules regarding priority payments, such as for individuals who are elderly or have serious illnesses. The Brazilian Constitution establishes a chronological order for payments, and a specific budget allocation is required annually. The existence of precatórios highlights the challenges in efficiently resolving legal disputes involving the state and ensuring timely compensation for those with legitimate claims against public entities in Brazil.