Banca de DEFESA: MARIA PEDRINA SILVEIRA DE OLIVEIRA

THE INFLUENCE OF TAX WAIVER ON THE FORMATION OF THE PARTICIPATION FUND FOR MUNICIPALITIES AND REFLECTIONS ON PUBLIC INVESTMENTS

Finnaceira Condition Theory. Municipal public revenues. Tax waiver. FPM. Public investments

The general objective of this study was to investigate the influences of tax waivers on the formation of the Municipal Participation Fund (FPM) and the effects on public investments made by municipalities in Bahia. This research is relevant due to the predominance of investigations on the topic in other Brazilian states and municipalities, with a lack of comprehensive studies from this perspective, especially related to tax waivers, FPM and public investments. By approaching accounting applied to the public sector, focusing on public budget, public revenues, collection and distribution, the study offers valuable insights for audit professionals, providing an improved understanding of the factors that influence municipal revenues and expenses. This information is essential to guide financial management decisions and identify areas for improvement in the accounting and financial management of municipalities. The results revealed a negative effect of the FPM variable, reducing the tendency of municipalities to reduce investments when receiving a larger portion of the FPM. On the other hand, the Tax Waiver variable had a positive and relevant impact on municipal expenses in all three moments, associating the tax waiver with an increase in municipal investments. It is crucial to note that the Pandemic variable, initially associated with a positive effect, turned into a negative effect after one and two years, indicating an unfavorable influence in the subsequent period. In general, the results point to a positive and statistically significant relationship between tax waiver, FPM and municipal investments, evidenced by positive coefficients and significant p-values in the quantile regression analysis, contradicting several previous studies. It is recommended for future research to analyze different or broader samples, covering other states or the country as a whole.