The Political Economy of the State Participation Fund: A historical and institutional approach

• Autor(a) principal: Castro, Kleber Pacheco de
• Data de Publicação: 2022
• Outros Autores: Lima, Ana Carolina da Cruz
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Cadernos Gestão Pública e Cidadania (Online)
• Texto Completo: https://periodicos.fgv.br/cgpc/article/view/81851
• topic: transferência intergovernamental; equalização fiscal; federalismo fiscal; Fundo de Participação dos Estados (FPE); critério de partilha.; intergovernmental transfer, tax equalization, fiscal federalism, state participation fund, sharing criterion.; transferencia intergubernamental, igualación fiscal, federalismo fiscal, fondo de participación del estado, criterio de partición.

The State Participation Fund (FPE) has undergone a number of changes to its legislation, which have essentially sought to change the volume of resources making up the fund (vertical distribution) or to change the distribution rule for these resources (distribution horizontal). In the first case, the political context of greater or lesser centralization of power in the Union is decisive. In the second case, the explanation for the pattern of FPE sharing lies in the disproportionality of the political representation of the different regions in the National Congress and in the regionalist and non-cooperative sentiment that prevails in the federative relations in the country. This scenario helps to understand why attempts to change the system are blocked, even when the change starts from a judicial determination. The result is the construction of a skewed fund, which passes off a tax equalization system, as observable in the most advanced federations.