Municipal tasks and fiscal centralization in the light of the

Brazilian legal system

Maria Curie-Skłodowska University

Wydział Prawa i Administracji

Course: Local Self-Government and Fiscal Decentralization in EU

Lecturer: Prof. Dr. Boštjan Brezovnik

Dylhermanno dos Reis Menezes

05/2024
 The Constitution, along with its Amendments, is the primary source of Administrative
Law. In Brazilian law, it is possible to refer to constitutions in the plural, given that, since
Brazil has adopted a federative form of government, there are, in addition to the Constitution
of the Republic, the constitutions of the member states and the organic laws of the Federal
District and the municipalities. In this essay, based on the Brazilian Constitution,
administrative order, and doctrinal understanding, we will divide in three governmental
sections: the Union (Federal State), the States and the Federal District, and the Municipalities.
The 1988 Constitution adopted federalism as the form of government, based on a
constitution and characterized by political-administrative centralization in a single
decision-making center. This differs from a Confederation, which consists of a union of
sovereign states through a dissolvable international treaty (Moraes, 2023). Article 1 of the
Federal Constitution states that the Federative Republic of Brazil is formed by the
indissoluble union of the States, the Municipalities, and the Federal District. This is
complemented by Article 18, which states that the political-administrative organization of the
Federative Republic of Brazil comprises the Union, the States, the Federal District, and the
Municipalities, all of which are autonomous and possess the triple capacity for
self-organization and self-regulation, self-government, and self-administration.
The Federal Constitution enshrines the municipality as an indispensable federative
entity within our federative system, integrating it into the political-administrative organization
and guaranteeing it full autonomy, as evidenced by articles 1, 18, 29, 30, and 34, VII, c, of the
Federal Constitution. Municipal autonomy, akin to that of the member states, is characterized
by the triple capacity for self-organization and self-regulation, self-government, and
self-administration.
Thus, the municipality self-organizes through its Municipal Organic Law and,
subsequently, through the enactment of municipal laws; self-governs through the direct
election of its mayor, deputy mayor, and councilors, without interference from the Federal and
State Governments; and self-administers in the exercise of its administrative, tax, and
legislative powers, directly conferred by the Federal Constitution.
In the studies by Batista and Nascimento (2021), it is noted that the 1988 Constitution
created favorable conditions for the participation of local communities and for
municipalization. This development was facilitated by the Constitution’s mandate for
decentralized and participative social policies. The authors also found that municipalization
has extended beyond governments acting as providers of social policies to include local
communities, represented by community councils (2021 apud Souza, 1996, p. 12). This
conclusion was reached due to the existence of several federal programs and other funds from
multilateral agencies, which require the establishment of community councils for the transfer
of resources.
This can be observed both factually and constitutionally—in the Brazilian
Constitution, the chapter on Municipal Competence (Articles 169-171) outlines the varied
responsibilities of municipalities. These responsibilities include traditional urban services and
utilities, such as road maintenance, street cleaning, garbage collection, parks, cemeteries,
slaughterhouses, public markets, water drainage, street lighting, cultural and recreational
activities, inspection of private construction, urban planning, water supply, and sanitary
sewage. These latter services are also sometimes managed by the state or private enterprises.
Regarding urban public transportation, municipalities have the authority to grant concessions
to private entities.
However, an analysis of the fiscal framework and the financial transfers from the state
to the municipality reveals a gap between municipal revenue, federal revenue, and the transfer
of equivalent monetary amounts to these entities:
Source: Batista; Nascimento (2022)
In conclusion, the 1988 Constitution delegated to municipalities the responsibility for
organizing their social development and ensuring the well-being of their citizens, recognizing
that municipalities are the administrative units closest to people’s most basic needs. The
implementation of actions and public policies—such as those consolidating public health and
education services—materializes at the municipal level. As integral parts of Brazilian
federalism, municipalities have experienced various periods of progress and regression,
particularly concerning fiscal decentralization.
Moreover, municipalities, especially the most economically fragile ones, remain
vulnerable. Managing at the local scale has historically been, and may continue to be,
financially unworkable when viewed from a national perspective (Batista; Nascimento, 2021).
Despite these challenges, many new municipalities have been established, necessitating
effective management to enhance the quality of life for their residents. Thus, the 1988
Constitution paved the way for decentralization and participative management.
Bibliography:

Batista, M. dos R.; Nascimento, R. do C. (2021). “Municipality as a federal entity and

municipalization in Brazil”, Boletim de Geografia, 390, p. 106-117, e58591.
DOI:10.4025/bolgeogr.v39.a2021.e58591.
Nascimento, Carlos Valder do; Di Pietro, Maria Sylvia Zanella; Mendes, Gilmar Ferreira
(Coord.) (2018). Tratado de Direito Municipal. Belo Horizonte: Fórum. ISBN
978-85-450-0228-4.
Moraes, Alexandre de (2023). Direito constitucional. 39. ed. – Barueri [SP]: Atlas