Financial Analysis Of The Brazilian Municipalities In The Year 2016, From The Rpg Model

The aim of this paper was to investigate the fiscal situation of the Brazilian municipalities in 2016, linking public revenue and expenditure, with economic activities and their impacts. Brazilian cities exhibit very different economic structures. Management transparency, coupled with access to information, can contribute to the formation of citizenship and improvement of the supply of goods and services. In the methodology, the Geographically Weighted Regression Method (RPG) was used, structured based on the following variables: financial execution result ratio (QREF); own revenue; tax on the movement of goods and services; property tax on motor vehicles; participation fund of the municipalities; expenditure on personnel; gross domestic product per capita; and industry participation. The results pointed out that the fiscal scenario of the municipalities of the South and Southeast regions were the best, when compared with the other regions. Regarding the size and geographical location, the variable own income was the highlight in the most populous municipalities, while in small municipalities the financial relevance was associated with constitutional transfers. In the application of the RPG model, the mapping of the statistically significant coefficients allowed the identification of the location of the units in which the impact of the observed variables was more accentuated. Occasionally, the per capita gross domestic product was associated with an improvement in the financial condition, while personnel expenses contributed to lower the QREF.