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Budgetary Solvency and the Efficiency of Public Services in Brazilian Municipalities

Author

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  • Levy Ruanderson Ferreira da Silva
  • Severino Cesário de Lima
  • Alexandro Barbosa
  • Luis Manuel Esteves da Rocha Vieira

Abstract

Objective: this study investigated the impact of budgetary solvency on the dynamic efficiency of health and education services in large Brazilian municipalities. Theoretical approach: there are questions in the literature regarding the existence of a relationship between the quality and efficiency of the provision of goods and services at local government levels and their sources of financing. Methods: efficiency scores for the health and education sectors were derived using SBM dynamic network data envelopment analysis. The generalized estimating equations method was employed in the second stage. Results: a significant positive relationship between budgetary solvency and the efficiency of health and education services was found, indicating that service efficiency in large Brazilian municipalities depends on government budgetary solvency. Conclusions: the findings reinforce the academic framework on financial condition and fiscal federalism theories in Brazil. This study supports social control, enabling society to demand better performance from public officials in healthcare and education service provision.

Suggested Citation

  • Levy Ruanderson Ferreira da Silva & Severino Cesário de Lima & Alexandro Barbosa & Luis Manuel Esteves da Rocha Vieira, 2026. "Budgetary Solvency and the Efficiency of Public Services in Brazilian Municipalities," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 30(Vol. 30 N), pages 240047-2400.
    • Handle: RePEc:abg:anprac:v:30:y:2026:i:3:1754
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