FIRJAN's IFGF: Brazilian Municipalities Weathering Crisis with Good Fiscal Management

Abstract

Released in 2012, the IFGF illustrates how taxes paid by society are managed by city halls administrations. The IFGF provides greater transparency to municipal accounts through a simple and available tool for public inquiry, in which every Brazilian citizen can participate in the discussion regarding the fiscal situation of his/her city. In addition, indicators are used as a management tool for thousands of municipal managers in the country, either to build scenarios or to improve decisions regarding the correct allocation of public resources. IFGF is based on five aspects: the ability to earn revenue without relying on state and federal transfers, the ratio of the budget that goes into payroll, cash sufficiency, investment capacity, and indebtedness. The indicator ranges from 0 to 1.