SILVA, J. C.; SILVA, Jurandi Carvalho da.
Résumé:
The Fiscal Responsibility Act (FRA) sanctioned on May 4, 2000, implemented a set of rules meant to guide the application of government funds (on all levels) in a balanced manner, with a view to instituting responsibility in fiscal management by means of actions intended to prevent risks and correct deviations that could affect the current and future stability of government expenditure. The FRA set forth expenditure parameters for each entity in the Federation. Budget restrictions established minimum and maximum expenditure limits considering function (e.g. education and health) and nature (e.g. personnel and social contributions) respectively. In this context, the overarching goal of this study was to analyze whether the Personnel and Social Contribution Costs (PSC) of the municipal government of Pariri, in the Brazilian state of Paraíba, during 2018 to 2020 complied with the limits stipulated by the FRA on a municipal level. This topic was chosen due to a lack of empirical studies showing the fiscal framework of small municipalities, particularly those in the poorest states of Brazil (as is the case of Paraíba) where reliance on intergovernmental transfers is greater. In terms of methodology, this research is a descriptive and exploratory literature and documentary review using a quantitative approach, as well as a case study. The study found that, despite exceeding in some months the FSC expenditure limits established by the FRA, when considering the aggregate (annual) results the Pariri municipal government did not violate the FRA in any of the years analyzed. The conclusion drawn is that the Pariri municipal government showed fiscal oscillation on occasion (something that is natural and that the FRA itself accepts), but ultimately managed to achieve every year rates consistent with the requirements established by fiscal rules.
