Fusão de municípios: a excessiva descentralização no Rio Grande do Norte

Abstract

This study aims to verify whether local governments in Rio Grande do Norte could benefit from economies of scale, given the merger of small municipalities. In order to meet this objective, budgetary and fiscal reports were collected from the municipalities of Rio Grande do Norte from 2015 to 2019. The research uses the quantitative method regarding the approach to the problem and can be understood as descriptive from the point of view of its objectives. After analyzing the revenues collected and expenses settled contained in the tax reports, it was found that municipalities of up to 5,000 inhabitants have low financial autonomy when compared to other population ranges, as they are highly dependent on tax transfers. It was found that these municipalities cannot raise, in their own way, financial resources to fund the administration itself. Finally, through the analysis of the per capita expenditures of the municipalities, it can be said that it is possible to obtain, in a relevant way, economies of scale in terms of the number of inhabitants, because larger municipalities demonstrate a greater efficiency in their per capita expenditures. This study concluded that there are strong indications that local governments in Rio Grande do Norte can achieve greater economic and financial viability with the merger of small towns.