Endividamento dos municipios do estado do Rio de Janeiro

Abstract

The Fiscal Responsibility Law has the objective of establishing limits for the administration of resources and management of revenues and expenses of the public entity, being considered an extremely important element for the control and management of expenditures and revenues of the public entity. The general objective of this study is to investigate the financial variables that affected the level of indebtedness of municipalities in the State of Rio de Janeiro from 2005 to 2019, this state was chosen because it was the first to declare a state of financial calamity in June 2016. The effects of the FRL on municipal public indebtedness were analyzed based on financial management indicators described by Corbari (2008). The results obtained showed that there is a positive correlation between the indebtedness of municipalities and the Lagged Indebtedness, Capital Structure and Personnel Expenditure variables, although the latter did not show significant variation over the period analyzed. Regarding the Liquidity, Degree of Dependence and Investment Expenditure variables, the coefficient was negative. Thus, it is possible to conclude that the approval of the FRL is a true milestone for the Brazilian Public Administration, but it is not sufficient alone to solve the indebtedness of municipalities, requiring the creation of other strategies that strengthen the culture of valuing the fiscal balance so that priority should be given to reducing public indebtedness.