Royalties: Poor management and distribution of resources limits growth of municipalities

With production records in the pre-salt, Brazilian states and municipalities have won high levels in the collection of royalties and special participations. In Rio de Janeiro, for example, Firjan’s projections estimate that the State will obtain, in 2020, the unprecedented figure of R $10 billion. The Bonanza comes thanks to the region that follows from Niterói to Arraial do Cabo – including cities of Maricá, Saquarema and Araruama – whose collection from oil exploration exceeded, in 2018, the House of the billion reais, making the territory in the “Sheik” of oil National.

However, all this “bliss” has generated both optimism and concern, since municipalities like Campos do Goytacazes, in the North Fluminense in Rio de Janeiro-a pioneer city in the collection of royalties in the beginning of the decade of 2000-in addition to not generating Expressive improvements and development with oil revenues, has a monthly blunt of about R $30 million monthly and comes, to the locks in bounds, trying to stabilize the public accounts.

Due to examples of mismanagement, as in Campos and also Macaé, researches of the Laboratory of Analysis of Budgets and Public Policies of the Public Prosecutor of the State of Rio de Janeiro (LOPP/MPRJ), they resume the alert for the degree of dependence of the municipalities with the Oil revenues in Rio. The dependence of resources has not generated economic growth in the city, because instead of the collection is destined to the promotion of development and diversification of the economy, the values usually follow for personnel costing, sanitation of accounts and payment of debts.

Despite the prediction of a new season of good winds in the sector, Governments are not prepared to invest in growth and reduce oil dependence, and thus avoid repeating past mistakes. The solution of researchers to change this scenario is an increase in the levels of control of expenditures of municipalities and change in the current rules of distribution between municipalities. For, according to scholars, it is inconceivable that while Maricá receives bilionary values, São Gonçalo has a collection in the range of R $20 million.

See The Royalties distribution table:

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