Municipal Tax Effort: An Analysis of the Behavior of the Municipal Participation Fund (FPM) in Relation to the Tax Revenue of Municipalities in the Micro-Region of Araçuaí/MG from 2013 to 2018

Abstract

This research sought to analyze the behavior of the FPM in view of the tax revenue of municipalities in the micro region of Araçuaí / MG, from 2013 to 2018; as well as the analysis of the FPM transfer behavior in relation to budget revenue; evaluate the application of the FPM and check if there are measures by municipal governments to increase tax revenue.  In view of this, it is expected that this study, by demonstrating the origins of resources and the financial amount of the transfer to the FPM, will contribute to the study of public finances, and to the population of the micro region of Araçuaí / MG.  This research stands out as: bibliographic, documentary and field.  It was found that as revenues from other sources are not able to maintain the fiscal balance and investments of the municipalities.  It is also pointed out that the results showed a low rate of tax effort.