Revelations of dependence of intergovernmental transfers by the municipalities in the state of bahia: an analysis with panel data
International Journal of Development Research
Revelations of dependence of intergovernmental transfers by the municipalities in the state of bahia: an analysis with panel data
Received 25th August, 2021 Received in revised form 14th September, 2021 Accepted 19th October, 2021 Published online 28th November, 2021
Copyright © 2021, Fabíula Alves do Nascimento et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The disorganized growth driven by the emancipation of new municipalities generated a growing fragility in municipal finances, which, under the aegis of the 1988 Federal Constitution and Fiscal Federalism, have granted greater autonomy to several federative entities. However, from the fundraising point of view, many municipalities are still dependent on municipal transfers, exposing a distorted picture with a strong tendency to indebtedness and the presence of a public deficit. The present paper aims to evaluate the level of dependence of the municipalities in the State of Bahia regarding intergovernmental transfers in the composition of their current revenue. This is done by fastening on the assumptions of estimation models via Panel Data for the years 2010 through 2015. The outcomeshave showed a high degree of dependence on government transfers, besides a low capacity to collect its own revenues, corroborating other former studies.
