Marcio Marconato

The general objective of this work was to investigate the fiscal situation of the Brazilian municipalities, highlighting the main factors that influenced the results. For that purpose, the years 2002, 2007, 2009 and 2013, all selected under the Fiscal Responsibility Law (LRF), approved in the year 2000, whose regulations led to greater transparency and control of public spending. In its administrative political formation, Brazil presents great regional inequalities, where municipalities with federated condition coexist and, predominantly, municipalities with small populations. In the structuring of the methodology, the Fiscal Performance Execution Quotient (QERF) was used, to examine the collection, the own revenue, specifically the Tax on Goods and Services Circulation (ICMS) and of the Tax on Motor Vehicles (IPVA), and the share of the Union transfers; and in order to confront the expense, in the case the expense with personnel. In order to determine the relation between the QERF and the explanatory variables, spatial econometric methods were used in the with highlights for the Spatial Deviation Model, the Geographic Weighted Regression Method (RPG), for the year 2013, and the Spatial Panel Model, in the four analyzed. The results indicate that, on average, the fiscal scenario of the municipalities has improved in all the states, it being necessary to emphasize that in the South and Southeast regions, the indicators were better, noting that the size and geographical location are relevant factors to explain the context. In the case of larger municipalities, some with a federal state, the collection through own revenue stands out, with a prominence for the ICMS, while in the small municipalities, more vulnerable to the effects political interests, financial availability stems from transfers from the federal and the state governments. In general, the dynamic effect of the metropolitan regions, with higher economic flows, contributed to better fiscal results in 2009. The application o the RPG model was more adequate to clarify the relationship between the QWRF and the explanatory variables, and the mapping of the statistically significant coefficients allowed the identification of the location of the units in which the impact of the observed variables shows the geographic variability. The level of Gross Domestic Product per capita was associated with an imp0rovement in the financial condition, although the combination of negative coefficients related to the Personal Expenditure Indicator (IDP), reinforced the perception of the units in which employee spending contributed to decrease the QREF, generating weakness. Thus, the results showed progress in the QREF indicators of the units, noting that there was a fiscal improvement in the Brazilian municipalities, regardless of the size and region analyzed.