How will the tax situation of municipalities be analyzed?

Published on 11/12/2020

The Córrego do Feijão Mine disaster has brought economic impacts to the municipalities involved. The fiscal situation of the cities is one of the dimensions affected, a consequence of the restrictive measures imposed for precautionary reasons and the paralysis of Vale's activities, which reduced the value of production and income of these localities. At the same time, the demand for public services has increased, considering the situation of greater economic and social vulnerability of families in the post-disaster period.

The objective of subproject 47 is to assess and characterize the fiscal situation of the municipalities affected and contemplated by the Brumadinho UFMG Project, but how will this research take place? Come with us, we will explain it to you!

The first step in the realization of this subproject is the collection of secondary data of the municipalities between the years 2014 and 2018. These data are of a budgetary nature and date from the pre-disaster period, which will allow detailing the fiscal structure in this period and, together with the control municipalities - cities with similar socioeconomic, productive and demographic profiles, will serve as a parameter for comparison of the situation after the disaster. The data will be taken from the National Treasury, the National Mining Agency, the Audit Court of the State of Minas Gerais, the IBGE, the João Pinheiro Foundation and directly from the municipalities, according to the access to information law.

After this first stage, data analysis will be carried out based on indicators of the fiscal situation that serve to monitor the fiscal conditions of the cities. To achieve this goal, information from various sources will be considered, such as the Accounting Statements Applied to the Public Sector, Fiscal Statements and budget pieces.

Next, it will be time to define the municipalities that will make up the control group. In this phase, the researchers will perform statistical analysis techniques - the so-called cluster analysis. This technique will allow the classification of cities similar to the affected municipalities by defining their characteristics, grouping those that have more similarities.

To complement this information, interviews with standard questions will be conducted with the authorities responsible for the budget in each of the nineteen affected municipalities, be they secretaries of the treasury or whoever they indicate.

Finally, the researchers will evaluate mitigating and reparative actions that are being carried out or are planned from the budget perspectives given the conditions of the disaster, in addition to the preparation of research reports.

That's a lot, isn't it? If you want to know more, keep following our website for information about this and other subprojects.