This paper aims to assess the degree of equilibrium in the distribution of revenues among municipalities of the State of Bahia and the effectiveness of its use in the period of 1998 the 2006. In order to do so, it analyzed the distribution and composition of municipal revenues and identified its evolution. The demand of services was evaluated on the basis of the population. Then, the degree of equilibrium was analyzed through the calculation of revenues per-capita of each municipality. Finally, effectiveness of public services was assessed by means of the Social Development Index (SDI) and an analysis of correlation between the revenues per-capita and SDI. Results showed high disparity among municipal revenues, deriving from huge intergovernmental transferences asymmetry, implying in a very low level of balance in the distribution of the public resources.
Municipalities; Public finance; Public revenue; Equity; Social development
