MUNICIPAL FINANCIAL MANAGEMENT IN A CRISIS SCENARIO

Abstract

This research investigated financial management in a municipality in northeastern Brazil in the face of the COVID-19 health crisis during 2020, focusing on the impacts on tax collection. Tax collection, the main pillar of municipal public finances, was analyzed in a scenario of economic and social instability as a result of the pandemic. Through a methodology that involved field, bibliographic and qualitative research, and using data from the municipal transparency portal, the study examined how the crisis affected the collection process and, consequently, the management of local public finances. To contextualize the analysis of financial management in crisis situations, the research explored fundamental concepts of public and municipal finance, in addition to detailing the main municipal taxes. The presentation of financial indices, through tables and graphs prepared based on accounting information from January to December 2020, made it possible to evaluate the responses of the municipal management to the economic shock. The survey results showed that the pandemic imposed significant challenges on Maracanau's financial management, resulting in a negative impact on revenues, especially taxes related to the sale of goods and services. This crisis scenario required specific adaptations and strategies in the management of municipal public resources.