Case study on the budget balance of a city hall in the southern region of Minas Gerais

Abstract

Accounting applied to the public sector allows control of public accounts and assertive decision making by managers. In addition, transparency in the disclosure of public accounts allows the entire society to check how the collected revenues are being applied. This article addresses an analysis of the budget balance in order to verify the level of spending, indebtedness and collection. A case study was carried out in the municipality of Itajubá, Minas Gerais, in the period between 2014 and 2018. In the methodology, the approved budget, budget execution and accounting indexes were used for analysis. It was found that, in 2015, 2017 and 2018, the budget result was in deficit and the expected revenue was higher than the revenue collected; the fixed expense was higher than the executed expense and there was an increase in capitalization. In addition, the municipality complies with the Golden Rule and with the norms established by the LRF and Law nº 4,320/64 in relation to the last year of mandate. It is concluded that the municipality of Itajubá managed to control spending levels without resorting to increased indebtedness in 2014, 2016, 2017 and 2018 and managed to obtain an increase in collection over the period analyzed.