Oil royalties and efficiency of municipal public spending in Education in the state of São Paulo

• Grant number: 12/19734-1
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: January 01, 2013
• End date: July 31, 2013
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Fernando Antonio Slaibe Postali
• Grantee: Giovani Mazuchelli Del Col
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

Law number 9.478, promulgated in 1997, has established new norms to the charging and distribution of the royalties of petroleum among federative entities, raising the sum destined to the municipalities involved with the production. The objective of this study is to analyze the efficiency of the application of these new resources in the municipalities of the state of São Paulo benefited by the law number 9.478, using this Data Envelopment Analysis methodology, which allows us to construct an index of efficiency. The analysis will focus the relationship between the increasing revenues coming from the new regulamentation and the evolution of the social indicators in these municipalities, especially educational indicators. In that way, we will pursue to validate the efficiency of the spending of the new revenues coming from the regulamentation approved in 1997 and in which way the collectivity is benefiting by the royalties earned by the prefectures, above all in promoting intergenerational justice, achieved by the application of the revenues coming from the exploitation of exhaustible natural resources in areas that generate future income non-related to this exploitation. That question is important in the current Brazilian horizont, in which the exploitation of pré-sal may raise the royalties earned by the municipalities.(AU)