UNCONDITIONAL INTERGOVERNMENTAL TRANSFERS IN THE MUNICIPAL PUBLIC BUDGET: AN ANALYSIS IN THE MUNICIPALITY OF NANUQUE IN THE FIVE YEAR 2018-2022 (Atena Editora)

Abstract

It is indisputable that the 1988 Federal Constitution guaranteed Brazilian municipalities numerous powers with the purpose of guaranteeing them equality before other federated entities. Furthermore, while it conceived, for example, exclusive tax jurisdiction to impose certain taxes, it also attributed several responsibilities in the provision of basic services to society. In this sense, in many cases, there is a latent disparity between the municipalities' ability to generate revenue and the expenses arising from the obligations imposed. The Brazilian model of fiscal federalism favors the concentration of revenues in the Union and the states, leaving fiscal equalization in a vertical model, through intergovernmental financial transfers, to redistribute resources and mitigate disparities. Regarding the constitution of own revenue, CFRB/88, in article 156, recommends that it is the responsibility of municipalities to institute and collect some taxes. However, there is a constitutional provision in article 159, I, b, d, e and f of CRFB/88 that the Union will deliver a percentage of the net revenue from the Tax on Income and Earnings of any nature and the Tax on Industrialized Products to the Municipal Participation Fund (FPM). Therefore, as determined by art. 158, IV of CRFB/88, the states will transfer 25% of the Tax collection on Operations related to the Circulation of Goods and on Provisions of Interstate and Intermunicipal Transport and Communication Services (ICMS) to the municipalities, following the criteria of percentage apportionment of 65% in accordance with the Tax Added Value (VAF) and 35% in accordance with state law, which in Minas Gerais is Law 13.803/00, called Robin Hood Law, updated by Law 18.030/2009, Solidarity ICMS (Circulation of Goods and on Provisions of Interstate and Intermunicipal Transport and Communication Services) Law. In the present study, through bibliographical and documentary research with descriptive purposes and quantitative analysis, the objective was to analyze the composition of the budget of the municipality of Nanuque in the period from 2018 to 2022, taking as reference the revenues from IPTU, ITBI and ISSQN and the receipt of resources resulting from unconditional intergovernmental fiscal transfers from FPM and ICMS (Circulation of Goods and on Provisions of Interstate and Intermunicipal Transport and Communication Services). The results demonstrated that despite the periodic increases in budget revenues in the period from 2018 to 2022, the collection of IPTU, ITBI and ISSQN represented only 4.93% of total revenues. Furthermore, intergovernmental transfers from the FPM and the ICMS (Circulation of Goods and on Provisions of Interstate and Intermunicipal Transport and Communication Services) share represented 36.27% of the budget. Among the critical points highlighted, there was a need to improve the collection of municipal taxes, update local tax legislation, in compliance with the Principle of Strict Tax Legality and promote remedial measures that result in better compliance with established requirements. in the Solidarity ICMS Law. As a potential point, the research highlighted the municipality's adequacy to the requirements established in Law 18,030/2009 regarding the “Sports” criterion, which in the years subsequent to 2018 resulted in the contribution of R$ 178,937.65 reais to the public budget. It is suggested that research be carried out on the topic, due to the importance of unconditional intergovernmental fiscal transfers for the composition of the budget of the municipality of Nanuque.