Estrutura Arrecadatória e Desenvolvimento Socioeconômico dos Municípios Mineiros

The adoption of fiscal federalism in Brazil, has given states and municipalities partial tax capacity, once there is the alternative of generating their own revenues in addition to the participation in the Union tax revenues. However, it is noted that most municipalities are highly dependent on intergovernmental transfers due to their low tax effort, which implies insufficient income to fulfill their basic functions and onus, influencing municipal development. Thus, this study aimed to identify the relationship between the level of intergovernmental transfers and the composition of their own tax revenue to the socioeconomic development of municipalities from Minas Gerais. To reach the proposed objectives, were used Exploratory Data Analysis techniques, Anova test and the chi-square test. It was found that the higher revenue collecting potential municipalities have a better average performance with regards to variables related to population size, municipal development, income, municipal revenues per capita and value-added tax (VAT) by sector, except for the VAT per capita of the primary activities. It was also shown that the groups are different in average levels of own tax revenues, except when related with the revenue with ISS, which is not associated with the classification of municipalities on revenue collection potential strata. Moreover, it was found that municipalities with higher income per capita themselves have higher average levels of municipal development. Accordingly, it is concluded that the levels, as much as the composition of the own municipalities’ revenues, influence the development of the municipalities from Minas Gerais