Average was R $ 856.9 for each Brazilian; 938 municipalities allocated 3.2% of revenue for investments
Brazilian municipalities invested R $ 120.3 billion In 2024, according to a survey by (Federation of Industries of the State of Rio de Janeiro). The Firjan study was released on Thursday (18.Set.2025). Here’s (PDF – 1 MB).
From 2019 to 2024, total revenues grew 56.5% in real terms. In the same period, public investments grew 350%. The municipalities invested, on average, 10.2% of the total revenue.
The IFGF Indicator (FIRJAN Tax Management Index) varies from 0 to 1. The higher the number, the better the city’s fiscal condition. Firjan scaled to classify the situation as criticism (0 to 0.4 point), difficult (from 0.4 to 0.6 point), boa (from 0.6 to 0.8 point) and excellent (above 0.8).
The survey showed that 1,601 municipalities earned a maximum grade in the indicator by allocating more than 12% of the budget for this type of expense.
The average grade was 0.7043 point in the investment. There are, however, 938 municipalities (or 18.3% of the total) that allocated 3.2% of total revenue for investments.
The investment of R $ 120.2 billion corresponds to R $ 856.9 per Brazilian on average. In municipalities of up to 20,000 inhabitants, more resources were destined for public investments. In these cases, the average to $ 1,000 per inhabitant. The large cities, with over 100,000 inhabitants, had an average of $ 500.
Personnel spending
Firjan estimated that, on average, municipalities allocated 46.0% of the revenue for personnel spending in 2024. The LRF (Fiscal Responsibility Law) delimits a limit of 60%.
The index showed that 63.3% of municipalities have low revenue commitment to functionalism salaries. Represent 3,248 of the total cities
According to the study, there are 540 municipalities that compromised more than 54% of the budget with personnel spending. Among these cities, 131 allocated more than 60% of employee payment revenues, which is against the LRF limit.
LIQUIDITY
The indicator of liquidity Firjan shows the relationship between the remains to be paid accumulated in the year and the cash resources available to cover them the following year. In practice, it evaluates whether municipalities are postponing the payment of expenses for the following year without proper cash coverage.
The average grade was 0.67 point. Most (60%) of cities had good or excellent liquidity level. The study estimated that 2,025 municipalities had difficult or critical liquidity level in 2024. In this number, 413 that ended the year without sufficient cash resources to cover the post -year expenses for the following year. They took a zero grade.
METHODOLOGY
The IFGF (Firjan Fiscal Management Index) was created to evaluate the public accounts of Brazilian municipalities by the Federation of Industries of the State of Rio de Janeiro. In this edition, the fiscal staff was analyzed from 2024. He took into account the data of the 5,129 municipalities that referred the necessary reports to the National Treasury.
Firjan stated that cities concentrate 95.6% of the Brazilian population.
IFGF consists of 4 indicators:
- IFGF Autonomia?
- IFGF Personnel Expenses;
- IFGF Liquidity;
- IFGF Investments.
O Ifgf Autonomia It considers the municipality’s ability to finance the administrative structure itself, such as the City Council and the City Hall.
In this regard, Firjan considered local revenue minus the administrative structure to evaluate net current revenue.
In the 2nd criterion, IFGF Personnel Expensesthe Federation evaluates the degree of rigidity of the budget of each City Hall and personnel expenses.
O IFGF Liquidity It analyzes the fulfillment of financial obligations, which analyst the cash and the remains to be paid.
Already the IFGF INVESTMENTS Calculates resource allocation capacity to create well-being and competitiveness.
The index has a score ranging from 0 to 1, according to the closer to the better the fiscal situation in the municipalities. Firjan divided into 4 groups:
- From 0 to 0.4 point – Critical management;
- From 0.4 to 0.6 point – Management in difficulty;
- 0.6 to 0.8 – Good management;
- 0.8 to 1 – Gesture of excellence.
