A influência da renúncia fiscal na formação do fundo de participação dos municípios e os reflexos nos investimentos públicos.

Abstract

The Municipal Participation Fund (FPM) plays a crucial role as a government transfer to municipalities, whose population distribution can generate imbalances, directly impacting local public investments. The significant presence of tax waivers within the scope of the FPM increases these variations, influencing the availability of resources allocated to municipalities. The study aimed to investigate the influences of tax waivers on the formation of the FPM and its effects on public investments made by municipalities in Bahia, filling a gap in comprehensive research from this perspective. By approaching accounting applied to the public sector, with an emphasis on public budget, revenues, collection and distribution, it provided valuable insights for audit professionals, improving the understanding of the factors that shape municipal finances. Using distributed lags, fixed effects regression and quantile regression for greater precision, the results revealed a negative effect of the FPM, decreasing the propensity of municipalities to reduce investments when receiving a larger share of the FPM. On the other hand, the tax waiver demonstrated a positive and relevant impact on municipal expenses, associating it with an increase in investments. It is crucial to note that the Pandemic variable, initially associated with a positive effect, turned into a negative effect after one and two years, indicating an unfavorable influence in the subsequent period. In general, the results point to a positive and statistically significant relationship between tax waiver, FPM and municipal investments, contradicting previous studies. It is recommended for future research to analyze different or broader samples, covering other states or the country as a whole.