Municipal fiscal risk index: a risk management tool in local governments

• Autor(a) principal: Silva, Leinad de Carvalho
• Data de Publicação: 2022
• Outros Autores: Machado, Daiane Pias, Quintana, Alexandre Costa
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Research, Society and Development
• Texto Completo: https://rsdjournal.org/index.php/rsd/article/view/31003
• topic: Tax risk index; Tax risk; Public sector.; Índice de risco fiscal; Risco fiscal; Setor público.; Índice de riesgo fiscal; Riesgo fiscal; Sector público.

This study aims to establish a Municipal Fiscal Risk Index (IRFM), with accounting indicators that assess the economic-financial condition of short and medium-term fiscal decision-making; different from other indexes found in the literature, which value only budgetary aspects in the assessment of the Fiscal Risk of public entities. A methodology was developed that used the accounting indicators: general indebtedness; short-term indebtedness; immediate financial indebtedness; share of short-term debt over long-term debt; and debt limit. The arithmetic mean between them was calculated, composing, in aggregate, the IRFM of Brazilian capitals, which varies between 0 and 1, knowing that the closer to 1, the greater the fiscal risk of the respective public entity. The IRFM proposed in this study serves as a risk assessment instrument and can be incorporated into risk management models used by public entities, such as Enterprise Risk Management (ERM - COSO), Risk Management - Principles and Guidelines (ISO 31000 - ABNT) and Management of Risk – Principles and Concepts (Orange Book - HM Treasury). Therefore, it constitutes one more element for the management and control of fiscal risks in the public sector.