FINANCIAL PERFORMANCE OF GAÚCHOS MUNICIPALITIES: AN ANALYSIS OF PRE AND POST-ENACTMENT OF FISCAL RESPONSIBILITY LAW – LRF

Abstract

This paper aims to identify the financial performance of gaucho’s municipalities before and after enactment the Fiscal Responsibility Law (LRF), based on personnel expenses and net debt metrics. This is a descriptive research with quantitative approach, by analyzing and understanding the mean difference analysis between the periods 1997-1999 and 2008-2010. Data collection occurred in documentary research reports published by FINBRA STN, referring to 429 municipalities. It was found that the performance after LRF was favorable in reducing the overall average in the two variables studied. In compliance with the legal limits, performance metric was favorable in personnel expense, and unfavorable in consolidated net debt. We conclude that in general the advent of LFR directed improvements in the financial management of gauchos municipalities surveyed.