Ajustes fiscais com responsabilidade nos municípios do Brasil

Abstract

This work focuses on empirical evidences of how budget disequilibria affect the quantity/quality of social investments in the county public administrations in Brazil for periods after 1988, which is a benchmark for significant constitutional reforms. The referential of analyses are the fulfillment the Law of Fiscal Responsibility, the ethnic of social responsibility and the qualification of public spending, by taking into account the country regional disparities and political ideologies in the local administrations. Initially, it is testified that the country do really need of such a fiscal law to discipline public spending, as long as social and economical benefits from per capita investments in education, health and infra-structure are concerned. Nevertheless, the stage and levei of economic activity do not necessarily dictate whether the county administration fit the budget balance or not. Econometric models fitted to panel data provided, with high levei of accuracy, that administrations based upon liberal political ideologies characterize a relevant indicator for fiscal fitness, while the significant amount of financial transfer from federal and state governments to the local ones may constitute a threat for such an equilibrium, as well as malpractice of public funds by mismanagement.