1 PUBLIC FINANCE MANAGEMENT: AN ANALYSIS OF ZERO DEFICIT IN MINAS GERAIS 1 Summary This study aims to identify and analyze how the state government of Minas Gerais has achieved the goal of zero deficit by reformingthe State itself. The results show the government of Minas Gerais has achieved the goal of zero deficit due to the increase of the Budgetary Revenues and reduction of the Budgetary Expenditures until 2004, and the lower rising of costs in relation to revenues during the rest of the period. It was also identified a growth in investments, which include constructions, facilities, and health in the government of Minas Gerais. Keywords: Managerial Public Administration, Administrative Reform of the State, Management Shock, Public Finance. 1. Introduction Organizations need to be constantly adapting to innovations due to technological development in a globalized world. Those organizations that do not fit or do not pursue innovation tend to close their doors. This is also true for public organizations. As shown by Osborne and Gaebler (1994), public organizations must undergo reforms, as the bureaucracy that was developed in an environment very different from the current one, becomes deficient in today's contemporary setting. It requires flexible and adaptable institutionswhich produce goods and services of high quality, considering productivity of the investments made. Trying to fit in this new reality, the state of Minas Gerais searched for current management mechanisms to reform its management structure. This reform of the State of Minas Gerais began with the administration of the Governor Aecio Neves, in It was called "Management Shock". For Fabris (2007), the first stage of shock management aimed at rationalizing expenditure in 2003 and increasing revenue in 2004 to control the public accounts and enable the growth of
2 2 investment in subsequent years, 2005 and On the other, hand, the second phase ( ) focused on the agility and quality of public spending, especially in the social area, regarding the search of "equity between people and between different regions of the state." The guideline was that Minas Gerais hadan administration focused no more on debt management, but on results management. As shown by the message of the Governor to the Legislative Assembly, more positive balance between revenues and spending - called "Zero Deficit" was one of themany objectives of the Management Shock (Imprensa Oficial do Estado de Minas Gerais, 2004). As previous analysis, we can identify that this goal was achieved in the second year after the implementation of the Management Shock. Thus, this study presents the following question to be answered: How the state government of Minas Gerais could technically achieve the goal of zero deficit through the "Management Shock"? Achieving Zero Deficit goal is important for any government seeking for efficiency, because the resources can be best applied in the areas of social and economic development. The State becomes more and more on debtif the result is negative, which will compromise its own earnings, in order to be used for payment of interest and repayments of past debts. Thus, this study aims to identify and analyze the variation of the accounts that make up the revenue and expenditure budget of the state of Minas Gerais, between the years 2001 to 2009, to explain how the state government has achieved the goal of deficit Zero through Management Shock. This research is characterized as descriptive as it seeks to identify and analyze the variation of the accounts that make up the revenue and expenditure budget of the state of Minas Gerais, between 2001 and 2009 in order to understand how the state government achieved the Zero Deficit purpose addressed by Management Shock. According to Gil (2009), descriptive research aims to describe the essential characteristics of a given population or phenomenon or the establishment of relationships between variables. As for the procedures, the research is characterized as bibliographic and documents review. We used qualitative and quantitative approach in data analysis. For Minayo (1999), the set of qualitative and quantitative data do not repel each other. On the other way round, they complement each other, because the reality covered by them interacts dynamically, excluding any dichotomy.
3 3 It was collected data of Budgetary Revenues and Budgetary Expenditures considering the current values of the state of Minas Gerais, between 2001 and These data were extracted from the website of the Ministry of Finance, and they were updated for the year 2009, with the National Index of Consumer Price Index - IPCA as parameter. These indicators updated can be seen in Table 1. Data analysis of the State of Minas Gerais was divided into three phases: the first phase, we analyzed the variation seen in Budgetary Revenues; in the second and third phases, the analysis was performed considering the variations inbudgetary Expenditure and Budgetary Outcome. Budgetary Outcome is the result of Budgetary Revenuesless Budgetary Expenditures. In the following sections, it will be presented the Theoretical Review that supports this study, as well as the analysis and discussion of results and final considerations. 2. Reform of the State of Minas Gerais: synthetic analysis of the results of Management Shock According to Bresser-Pereira (2008a), only two state administrative reforms occurred in Brazil during capitalist development. The first was the bureaucratic reform in the 1930s.The second is called management reform or reform of public administration, in which Brazil was the first developing country to participate, starting in According to Osborne and Gaebler (1994), the corporate government that emerged in the United States in 1990, emphasizes achieving more with fewer resources in public administrations. This model began hiring management services, establishing a performance evaluation, and implementing participatory management, as well as adopting impact fees and strategic planning. Theseactions leaded to a model of reform of the state in which the managers started to search for results, to assign responsibilities to the citizens instead of serving them, and to meet the needs of customers and not the bureaucracy. A part from that, the managers started searching for teamwork, besides of inducing changes through the market. Matias-Pereira (2008a) identifies that administrative reforms came to most countries impelled by the Washington Consensus by comparing the evolution and the recent problems in the management of public administration in Brazil, the USA and the EU. Different studies have noted that the New
4 4 Public Management (NPM) may have affected many countries, but it had affected some more deeply. It is observed that, both in Brazil and the U.S. and EU, strong elements of continuity can be identified after more than 20 years of reform. It shows that they helped little in terms of stability or popular satisfaction. Analyzing only Brazil and aiming to reconstruct in a broader way the trajectory of its public administration in the last 20 years, examining both the advances and innovations, as well as the errors driving the reforms and the management problems that still persist, Abrucio (2007) proposes a four strategic axis for the State to face the challenges of twenty-first century for its own modernization, which are: professionalism, efficiency, effectiveness and transparency/accountability. In this sense, Bresser-Pereira (2008b) developed a model of public management reform which he called the structural model of public management. He argues that this model makes the state more capable and more efficient since it adopts a particular structure to shareduties among the organization of the State itself, public non-state organization, corporate organization and private organizations. A part from that, it adopts a management strategy that makes high-ranking civil servants more autonomous and more accountable, motivating them and enabling them to be more efficient. Along the same lines, when considering the modernization of public administration in Brazil, Motta (2007) concludes that modernization will only happen with effective reforms that redistribute power and resources to change the channels of communication between the public and its administration. New spaces, rules and administrative structures are essential to ensure more authenticity in political representation. Public administration needs to use various management tools that can support the management to meet all these necessary changes. Several studies were conducted in Brazil for a better understanding of this process. In this sense, Matias-Pereira (2010b) identified that the motivations that led to the development and implementation of corporate governance in the public sector are related to the serious difficulties that the government has to face to make its actions more effectives. The actions are often slow and inflexible, which reflects the quality of public services offered to population. For the same author,
5 5 consolidation and institutionalization of the process of public governance in the country is the greatest challenge to be overcome by the Brazilian government, in partnership with the private sector and third sector. Cerchiari and Erdmann (2008) developed a model for public health management, using formulas as indicators to assess quality and cost in healthcare. This model was named Information System for Diabetes and Hypertension Program (SIPDH). It is an example of application of management tools in public administration. Also related to the Brazilian health, Fadel et al (2009) reported the Pact of Public Health, to support the process of public administration in Brazil, using documental analysis. According to these authors, this new policy, still in the initial phase of implementation, is a really unique and highly efficient optimization of the practice in public health. However, its fulfillment is directly related to overcoming operational and political obstacles inherent to each level of management. Loureiro, Teixeira and Moraes (2009) tried to analyze the transformations of recent decades in the Courts of Accounts in Brazil, in the light of the discussion about institutional development. In this case, the criticalconjuncture of democracy and the Constitution of 1988 brought changes, but these were neutralized by the veto of the ruling elite, especially in some courts. On the other hand, the new critical conjuncture represented by the Fiscal Responsibility Act of 2000 changed the politics and institutional dynamics, allowing that the changes which remained blocked until recently started to be implemented. It happened because the ability to exercise such vetoes was decreased. With respect to the Courts of Justice, a study by Curi et al (2010) showed trends in spending more on Courts of Justice in Minas Gerais in relation to the number of processes. The opposite situation occurred in Sao Paulo. When confronted the expenses of the Court, with GDP in both cases, there was a change in expenditure. Comparingthe costs of courts with the revenues of the charges and fees, it was observed that in Minas Gerais there was is a variation between 12% and 26% of total expenditure in 2004 to 2008, respectively. In Sao Paulo, the range was between 18% and 27%, allowing the conclusion that in both cases revenues with costs and fees raised.
6 6 Focusing on public policies, Lotufo and Miranda (2007) studied issues concerning the poor capability of governments to formulate and implement public policies, considering, particularly, some cases of government management of state departments of health, under the perspective of its leaders. The evidence refers to the characteristics of managers and management within the state government. There are some difficulties and shortcomings related to policy formulation, use of planning and scheduling technology, configuration of strategic direction systems, implementation of government health policies, investments forthe qualification of the sector management practices, with gradual increase in the capability of state governments in carrying out and implementing its policies. In this context, the state of Minas Gerais faced "Management Shock" recently, which is nothing more than a reform in state management. As the Imprensa Oficial do Estado de Minas Gerais (2004), "Management Shock" aimed to reform the State to obtain a positive balance between revenues and expenses - called "Zero Deficit", follow upstate actions in order to obtain the maximum efficiency in government intervention and to obtain positive outcomes. The actions implemented seek to revise the model of human resource management, procedures and administrative routines. It also consolidated the partnership with the third sector and private sector in delivering public service, aligned to the assessment of institutional and individual performance and transparency of public action. According to the post of the Imprensa Oficial do Estado de Minas Gerais (2004), it is important that all the legal features of the structuring "Management Shock" project was made from a new paradigm that provides the alignment of people development, organizational objectives and evaluation of the results of public politics. In the study by Corrêa (2007), it was developed the argument that the reform of the State of Minas Gerais was made possible by the development of strategic planning and facilitated by the policy and public management by results providing a strategic alignment of the organs, organizations and servers to the government targets. It shows also that even in a context of reform, where there are bigger regulatory role of the state and reduced role as provider, it is possible to increase accountability and responsiveness, as well as strengthening civil society.
7 7 Lemos (2009) examined this model in light of existing literature on that subject aiming better understanding the application of results-oriented model of the state of Minas Gerais. After all the information gathered, the author analyzed the model in order to verify its appropriateness to the standards of results-oriented management. As a result, this study identified that Minas Gerais is at an equivalent level to that level of countries which already was evaluated by IDB / PRODEV and was regarded as well developed. In order to analyze the benefits of result-oriented management in the health sector, Pestana et al (2009) used the system for strategic planningas support for establishing all appropriated choices that the government should seek to build the future. It was observed the strategy for health care reorganization was developed from the logic of networks. Several studies have also tried to evaluate the results of the "Management Shock" in various sectors in the state. Queiroz and Ckagnazaroff (2010) observed that the shock was a change strictly related to the nature of the management itself, which broke new ground in terms of strategic, technological, structural and control aspects. Nevertheless, it did not get the same success in relation to human, cultural and political changing dimensions. To that end, Alves (2006) identified that one of the most outstanding marks in all interviews is the lack of knowledge of effective teachers in public schools in the state of Minas Gerais regarding the items evaluated and the criteria of Evaluation of Individual Performance (ADI). Apart from that, they do not know the steps to go after the evaluation and what are the consequences and uses of those results. In order to create mechanisms for evaluating public administration, Garcia (2008) tried to list some indicators for measuring the degree of efficiency of certain public agencies, such asinspecting organizations or higher agencies of inspection, or even by the served public, who benefits from provided services. For this, the study offered a list of basic indicators that can be used to measure the efficiency of public agencies. 3. Public finance: basic definitions of public revenue and expenditure
8 8 According to Santos (2006), financial management in public organizations focuses on the efficient gathering, allocation and distribution of resources to meet the aspirations of population andthe goals and objectives of the government. The gatherings are understood to be the revenues, whereas allocation and distribution are regarded as the costs of the public organization. According to Kohama (2003), government revenue is the collection of cash or other assets representing values performed by public funds as result of the right that the government has under the laws, contracts or any other titles in favor to the State. According to Machado Jr. and Reis (2003), revenue in public administration originates from the power of the internal public law, as from the right to manage its economic and administrative assets. Revenues are classified intobudgetary revenue and extra-budgetary revenue. For Kohama (2003), extra-budgetary revenue includes the payments made to commitments which will be required, for which payment is not subject to budget approval, and therefore independent of legislative authorization. So, the state is obligated to collect values that, in principle, do not belong to it. The state appears only as a depository of entering values for that proposal, for example, the guarantees, warrants, and other assignments. To the same author, the budgetary revenues are those revenues established by the budget law. It refers to resources established by the state budget, which specifications shall conform to discrimination in Annex No. 3 of the Law no /64. These revenues are classified into two economic categories: current income and capital revenues. As presented by Andrade (2007), current revenues are those revenues designated to current expenditures due to an amendment fact, such as, all transactions performed by public entities that do not affect the patrimonial result or increase of its own assets, or for the ones defined by law. According to Bezerra Filho (2006), such revenues are divided into the following sub-economic categories: Tax Revenue (Fees, Taxes and Improvement Contribution), Contribution, Assets, Agricultural, Industrial, Service, Current Transfers, and other Current Revenue. The Capital Revenues, in accordance with Art. 11, 2, of Law 4.320/64 updated by Law 1.939/82, are those on the realization of financial resources coming from debt creation; the conversion
9 9 of goods and rights into cash; the resources received from other public or private entitled persons designed to meet expenditure assigned on Capital Expenditures; and the surplus of the Current Budget too. According to Andrade (2007), capital revenues are divided into: Credit Operation, Disposal of Assets, Amortization of Loans, and Other Capital Revenues. On the other hand, according to Andrade (2007), public expenditure represent the use of State resources in funding their activities, either in the maintenance of its facilities and equipment or in service to society or engage in investment and other spending aimed at developing the economy. Expenses are classified as extra-budgetary and budgetary. For Bezerra Filho (2006), extra-budgetary expenditures are those not included in the budget law, including the various cash outflows resulting from the withdrawal of deposits, bonds, payment remains payable, and withdrawal of loans by anticipations of revenue. Budgetary expenditures are those that derive from the budgetlaw or their additional credits, aiming the implementation of government programs and actions. According to Andrade (2005), these costs go through three stages, which are commitment, settlement and payment. The correct registration and control of Income Accounts and Public Expenditures facilitate the action of the authorities in the management of public resources, enabling transparent and planned actions where the risks are prevented, and the deviations that may affect the fiscal balance are corrected. It also helps with meeting outcome targets in the relationship between spending and revenues, and in strict adherence to statutory limits relating to personnel expenses, indebtness, loans and waiver of revenue, among others. The public accounts of the state of Minas Gerais regarding "Zero Deficit" goalof the Management Shock will be analyzed on the bases of these conceptual aspects of revenue and expenditures. Thus, the next section will present the methodology for conducting this study. 4. Zero Deficit: financial analysis of public accounts of Minas Gerais
10 10 In this section we attempt to identify and analyze the variation of the accounts that make up the revenue and expenditure budget of the State of Minas Gerais, from 2001 to 2009, and to understand how the state government managed to achieve Zero Deficit purpose through the Management Shock. Table 2 shows the compositions of the revenue and expenditure budget and the outcome budget for each year of the analyzed period. As can be seen, Zero Deficit was hit by the state government in the second year of operation of the Management Shock. Remember that this plan began in Data for 2001 and 2002 were used in the study with the purpose of presenting the financial reality of the state of Minas Gerais before the administrative reform. In the analysis of the Budgetary Result of Minas Gerais, one realizes that from 2004, it was positive, reaching its maximum value over the study period, in 2008, where it represented the amount of R $ 650,876 million dollars. Furthermore, it will seek to identify groups of accounts that are more representative in the mix of revenues as well as those that are most relevant in the composition of budgetary expenditures, from 2001 to Therefore, it will be used Vertical Analysis to reveal the importance of percentages that each of the account groups have in relation to total revenue and total budgetary expenditures. First we will analyze the composition of the Budgetary Revenues. In Table 3, we can see that the Current Revenues are most important in the composition of the Budgetary Revenue of the state of Minas Gerais, while Capital Revenues are less relevant, reaching the percentage of 5.3% of Budgetary Revenues during the period, except for the year 2002, which accounted for 9.2% of revenue. Intra Budgetary Revenues remained zeroed in all years under study except in 2009, where it was responsible for 3.6% of Budgetary Revenue. By examining the composition of Current Revenue, it was identified that the Net Tax Revenues are most important. These revenues represented percentage between 61% and 63.4% of total revenuefrom 2001 to In later years, 2008 and 2009, there was a drop in the share of these revenues, to 59.6% and 57.3% of budgetary revenues, respectively. Net Current Transfers account was more representative among other accounts. These transfers were less relevant in the years 2001 and 2002, being respectively 17.5% and 14.5% of state
11 11 budgetaryrevenues. In 2003, that revenue was 19.5% and reached its maximum of 20.5% of budgetary revenue in This means the Net Current Transfers remained broadly stable between 2003 and Following the composition of the budgetary revenue appears Revenue Contributions account, which went from 7% in 2001 to 8.8% in 2004, when this account has reached its maximum value. From that year onwards, the importance of revenue contributions to the composition of the budgetary revenue falls down, reaching 6.9% in However, it was in 2009 when the Revenue Contribution demonstrated to be less relevant to the composition of the budgetary revenue, with a percentage of 3.9%. Asset Revenues account was in elevation throughout the study period. However, in the last three years this account had become more important, representing an amount of 4.9%, 4.5% and 5.0% in the years of 2007, 2008 and 2009 respectively. By analyzing the composition of Capital Receipts, the representativeness of the Loan Account in the composition of the budgetary revenue proved to be more relevant. There was an increase in recent years, going from 0.6% in 2007 to 1.4% in 2008 and to 3.2% in The Loan Amortization account also positioned in a significant way due to the reduction in the composition of budgetary revenues, which occurred in the early years of the study, dropping from 2.2% in 2001 to 1.5% in In the other years, this account has remained between 1.1% and 1.2% of budgetary revenues. Another important point to be listed among the capital revenue is the high variation of the Capital Transfer account in 2002, which accounted for 5.5% of budgetary revenues. In the remaining years, the weight of this transfer ranged from 2% to 0.5% in the budgetary revenue. The composition of Budgetary Expenditures of the state of Minas Gerais, between 2001 and 2009, is organized in Table 4, where it is possible to observe that the Current Expenditures are the most significant. However, over the years, the representativeness of current expenditure in the Budgetary Expenditures expressed variation and downward trend. In 2001, current expenditure had a weight of 89.4% of budgetary expenditures, but in 2003 its weight grown to 92.4%. Thereafter it declined and reached 81.5% in On the other hand, the Capital Expenditure showed an upward
12 12 trend. It represented 10.6% of total expenditure in 2001 and 14.7% of these costs in On the other hand, Intra-Budgetary Expenditureswere void between 2001 and 2008, butthey accounted for 3.8% of budgetary expenditures in Among the Current Expenses account, the Personnel and Social Charges was the most representative account and who also stands in the downfall. The representativeness of this account in the Budgetary Expenditure of Minas Gerais went from 48.5% in 2001 to 39.9% in This tendency was strengthened from Other Current Expenses account, the second in degree of importance in the Budgetary Expenditure, presented a slightly increasing trend, varying from 34.1% in 2001 to 36.2% in However, the Interest and Debt Charges account presented a decreasing trend in the period, dropping from 6.9% in 2001 to 5.5% in In the composition of the Capital Expenditure, the Investment account varied more, influencing the variation among the group of Capital Expenditures. This account went from 3.8% in 2001 to 8.9% in The other accounts that comprise the group of Capital Expenditures are: Financial Inversions, Debt Amortization, and Other Capital Expenditures. These accounts showed little variation over the period. In the sequence, we will analyze the evolution of each of the accounts that comprise the Income and Expenditure Budget of the state of Minas Gerais. Horizontal data analysis was adopted to point variations in these accounts, through this period, taken 2001 as the reference year. First we will analyze the evolution of accounts that comprise the Budgetary Revenues set out in Table 5. By analyzing the evolution of the Budgetary Revenues of Minas Gerais, it is identified that there was considerable variation between the years.during the first three years of study this recipe has remained stable, with a declining trend. However, from 2004 to 2008 it presented a considerable increase reaching 159% of 2001 revenues. In 2009, the revenue showed a downward trend, coming to represent 155% of 2001 revenues. In reviewing the accounts that make up the Budgetary Revenues, it is possible to identify that the Current Revenues showed a declining trend from 2001 to However, since 2004 these
13 13 revenues increased gradually until 2008, in which the current revenue of this year meant 162% of current revenue of As well as budgetary revenues, current revenues showed a decline, representing, about 149% of 2001 revenues in Among the accounts that make up the Current Revenues, almost all of them tended to increase in the period, except in 2008 and 2009, when the drop in revenue occurred in the most important account in regard to this group thatisnet Tax Revenues account.between these years, there was also a sharp reduction in Contribution Revenues, which decreased from 156% of 2001 revenues, in 2008, to 79% of the revenue of the base year, in This decrease between 2008 and 2009 can also be seen in different accounts like Other Net Current Revenues, Net Current Transfers and Industrial Revenues. Only the Asset Incomes had increased over the years. Net Current Transfers and Asset Revenues accounts presented a superior rise to other accounts that comprise the Current Revenues in the period. It is worth to highlight that Asset Revenues represented 639% of revenue, in 2009, compared to 2001 that wasconsidered the base year. Capital Revenues showed many different variations in the period. In 2002, this revenue represented 182% of previous year revenue, which is the base year. Between 2003 and 2007, these revenues were lower than these revenues in But, in the last two years of analysis, there was a considerable increase in these revenues, rising to 110% and 164% compare to the revenue of Among the accounts that make up the Capital Revenue, it is worth to mention the Loan Account, which showed a strong upward trend in the last years of analysis. In the following paragraphs, we will analyze the evolution of Budgetary Expenditures of the state of Minas Gerais, whose data are organized in Table 6. When analyzing the Budgetary Expenses over the years, it is possible toidentifya declining trend from 2002 to However, since 2005 these expenses had a propensity to increase. In 2008, they rose to 145% of total expenditure of In 2009, this value was reduced to142% of the base year expenses. The same tendencies can be observed in the current expenditures and capital expenditures. Only Capital Expenditures remained constant between 2008 and 2009.
14 14 In reviewing the accounts that make up Current Expenses, starting by expenditure on personnel and social charges, the account that is more relevant in this group, a reduction in these costsbetween 2002 and 2005 can be observed. From 2006 to 2008, this account showed an increase, coming to spend 126% of the expenses of Furthermore, in 2009 these expenses decreased to 117% of the base year expenses. However, the Other Current Expenses account remained constant from 2001 to 2003, but from that there was also an increase, coming to represent in 2009, 151% of the expenses in On the other hand, a revision onthe accounts making up Capital Expenses shows that the most outstanding account is Investment account. It remained on the rise from 2001 to 2008with the exception for In 2008, the investments represented 365% of the investments made in In 2009, there was a reduction in these costs, but it still accounted for 337% of that spent in Final Thoughts In this study, we found out that among the Revenue Budget, Asset Revenues was the most developed account, followed by the Net Current Transfers and later by Net Income Tax, despite the latter being the most representative. For this increased revenue, the government had to identify where it could improve its collection of taxes and then act so that this increase could be achieved. As mentioned, Net Tax Revenue was the account that most influenced this increase, which is mainlycomprised of tax revenue. For further researches, one may identify which taxes are responsible for increasingtax revenues, because it was not aimed at this study. The reduction in Budgetary Expenditures was provided by the reduction in expenditure on personnel and social charges, which lasted until 2005, butit had an increase from 2006 onwards. However, this reduction was in a smaller scale than the scale of increase in Budgetary Expendituresat that period. This rise of Budgetary Expenditures on a larger scale is due to the increase in Other Current Expenditures and in lower degree to the increase in investments made by the government. Some possibilities that may have occurred in favors of that situation are: freezing and/or reducing the salary of state servants; the interruption oftemporary service contracts, any service being
15 15 diluted among the effective servers; and better distribution of state services leading to the drop on the number of servers, and so on. With this result, the government of Minas Gerais began to have more control over resources, and more flexibility to meet the needs of the state. This can be seen by increasing the value designated to Investments Account, which includes spending on construction, facilities, and health. With this added control, the government also began to apply resources more appropriately and more accurately. Thus, the government is acting in advanceto avoid returning to deficit situation in the stateby foreseeing a reduction in revenue. However, the risk of deficit situation increases if the government by chance loses this control. This management reform occurred in the State of Minas Gerais as a result of hard work and determination. It is worth noting itshould happen in all Brazilian states and municipalities, because public funds would be spent on the criteria and not randomly, as it is seen in many localities. References Abrucio, F. L. (2007) Trajetória recente da gestão pública brasileira: um balanço crítico e a renovação da agenda de reformas. RAP. Revista de Administração Pública, v. 1, p Alves, A. C. T. (2006) As reformas em Minas Gerais: choque de gestão, avaliação de desempenho e alterações no trabalho docente. In: VI Seminário da Rede latino americana sobre trabalho docente, 2006, Rio de Janeiro. Anais VI Seminário da Redestrado, v. Único. Andrade, N.-A. (2005) Planejamento Governamental para Municípios: plano plurianual, lei das diretrizes orçamentária e lei orçamento anual: São Paulo: Atlas. Andrade, N.-A. (2007) Contabilidade pública na gestão municipal. 3.ed. São Paulo: Atlas. Bezerra Filho, J.-E. (2006) Contabilidade pública: teoria, técnica de elaboração de balanço e questões. 2.ed. Rio de Janeiro: Elsevier. Bresser-Pereira, L.-C. (2008a) O modelo estrutural de gerência pública. RAP. Revista de Administração Pública, v. 42, p , Bresser-Pereira, L.-C. (2008b) Reforma gerencial e o Sistema Único de Saúde. In: Fátima Bayma de Oliveira. (Org.). Política de Gestão Pública Integrada. Rio de Janeiro: Editora FGV, v. 1, p Cerchiari, G. S. F.; Erdmann, R. H. (2008) Sistema de informações para acompanhamento, controle e auditoria em saúde pública. Revista de Administração Pública (Impresso), v. 42, p Corrêa, I.-M. (2007) Planejamento estratégico e gestão pública por resultados no processo de reforma administrativa do estado de Minas Gerais. RAP. Revista Brasileira de Administração Pública, v. 41, p Curi, M. A.; Ribeiro, W. C.; Nuintin, A. A.; Nogueira, L. R. T. (2010) O comportamento das despesas dos Tribunais de Justiça dos Estados de São Paulo e Minas Gerais. Âmbito Jurídico, v. 82, p
16 Fabris, V. (2007) Sessão carta ao leitor: a segunda geração do choque de gestão. Revista Gestão Minas - Construindo um novo tempo, Belo Horizonte, ano I, n. 2, p. 2. Fadel, C. B.; Schneider, L.; Moimaz, S. A. S.; Saliba, N. A. (2009) Administração Pública: o Pacto pela Saúde como uma nova estratégia de racionalização das ações e serviços em saúde no Brasil. Revista de Administração Pública (Impresso), v. 43, p Garcia, R. L. M. (2008) Eficiência em Órgãos Públicos: uma proposta de Indicadores. 87p. Dissertação (Mestrado em Administração Pública) Fundação Getúlio Vargas, Rio de Janeiro. Gil, A. C. (2009) Métodos e Técnicas de Pesquisa Social. 6 ed. 2. Reimpressão. São Paulo: Atlas. Imprensa Oficial do Estado de Minas Gerais (2004) Mensagem do Governador à Assembléia Legislativa do Estado de Minas Gerais: apresentada na reunião inaugural da segunda sessão legislativa ordinária da décima quinta legislatura. Belo Horizonte, 356p. Kohama, H. (2003) Contabilidade pública: teoria e prática. 9.ed. São Paulo: Atlas. Lemos, C. S. (2009) Gestão orientada para resultados: avaliando o caso de Minas Gerais.116p. Dissertação (Mestrado em Administração Pública) Fundação Getúlio Vargas, Rio de Janeiro. Lotufo, M.; Miranda, A. S. (2007) Sistema de direção e práticas de gestão governamental em secretarias estaduais de saúde. RAP. Revista de Administração Pública, v. 41, p Loureiro, M. R.; Teixeira, M. A.; Moraes, T. C. (2009) Democratização e reforma do estado: o desenvolvimento institucional dos tribunais de contas no Brasil recente. Revista de Administração Pública (Impresso), v. 43, p Machado Junior, J. T.; Reis, H. C. (2003) A lei Comentada. 31 ed. Rio de Janeiro.IBAM. Matias-Pereira, J. (2010a) Administração Pública Comparada: Uma Avaliação das Reformas Administrativas do Brasil, EUA e União Européia - RAP. Revista de Administração Pública, v. 42, p Matias-Pereira, J. (2010b) Governança Corporativa Aplicada ao Setor Público Brasileiro - Revista de Administração Pública e Gestão Social (APGS), v. 2, p Minayo, M. C. S. (1999) Ciência, Técnica e Arte: o Desafio da Pesquisa Social. In: MINAYO, Maria Cecília de Souza (Org.) Pesquisa Social: Teoria, Método e Criatividade. 14 ed. Rio de Janeiro: Vozes. Motta, P. R. M. (2007) A Modernização da administração pública brasileira nos últimos 40 anos. RAP. Revista de Administração Pública, v. ed.esp, p Osborne, D.; Gaebler, T. (1994) Reinventando o governo: como o espírito empreendedor está transformando o setor público. Brasília, MH Comunicação. Pestana, M.; Tavares-Junior, F.; Mendes, E. V. (2009) Bases conceituais e programáticas do choque de gestão na saúde em Minas Gerais, II Congresso Consad de Gestão Pública Painel 23: Inovações gerenciais na saúde, Brasília. Queiroz, R. G. M.; Ckagnazaroff, I. B. (2010) Inovação no Setor Público: Uma análise do choque de gestão ( ) sob a ótica dos servidores e dos preceitos teóricos relacionados à inovação no setor público. Revista de Administração Pública (Impresso), v. 44, p Santos, C. S. (2006) Introdução à gestão pública. São Paulo: Saraiva. 16
17 17 Table Anexx Table 1 - IPCA per year Years IPCA 7,670% 12,530% 9,300% 7,601% 5,690% 3,142% 4,457% 5,902% 4,312% Source: IBGE - available in accessed on December 7, Table 2 Composition of budgetary revenues and expenditures of Minas Gerais Revenues Current Revenues Net Tax Revenues Revenue Contributions Asset revenues Agricultural and cattle raising revenues Industrial revenues Services revenues Net current transfers Other net current transfers Capital revenues Credit Operation Disposal of goods Amortization of loans Transfers of Capital Other capital revenues Intra Budgetary Revenues Budgetary revenues Expenses Current expenses Personnel and social charges Interest and indebtness Other Current expenses Capital Expenses Investments Financial inversions Amortization of loans Other Capital expenses Intra budgetary expenditures Personnel and social charges Budgetary Expenditures Surplus/deficit ( ) ( ) ( ) Source: Research data. Table 3 Vertical analysis of the composition of revenues - MG. Revenues Current Revenues 95,0% 90,8% 95,8% 97,2% 97,4% 96,3% 97,5% 96,5% 91,1% Net Tax Revenues 62,8% 63,4% 62,1% 61,7% 61,9% 61,0% 62,0% 59,6% 57,3% Revenue Contributions 7,0% 8,0% 8,3% 8,8% 8,2% 8,0% 7,9% 6,9% 3,6% Asset revenues 1,2% 1,0% 1,4% 1,9% 2,9% 3,8% 4,9% 4,5% 5,0% Agricultural and cattle raising revenues 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Industrial revenues 0,2% 0,2% 0,3% 0,3% 0,3% 0,3% 0,3% 0,2% 0,2% Services revenues 1,5% 1,6% 1,7% 1,5% 1,4% 1,2% 1,1% 1,2% 1,2% Net current transfers 17,5% 14,5% 19,5% 19,6% 19,4% 19,4% 19,2% 20,2% 20,5% Other net current transfers 4,8% 2,2% 2,5% 3,2% 3,3% 2,6% 2,1% 3,9% 3,2% Capital revenues 5,0% 9,2% 4,2% 2,8% 2,6% 3,7% 2,5% 3,5% 5,3% Credit Operation 0,3% 0,4% 0,1% 0,0% 0,2% 0,9% 0,6% 1,4% 3,2% Disposal of goods 1,2% 1,2% 0,1% 0,1% 0,2% 0,1% 0,1% 0,1% 0,1% Amortization of loans 2,2% 2,1% 1,9% 1,5% 1,2% 1,1% 1,2% 1,2% 1,1% Transfers of Capital 1,2% 5,5% 2,0% 1,1% 0,9% 1,2% 0,5% 0,7% 0,9% Other capital revenues 0,1% 0,0% 0,0% 0,0% 0,0% 0,4% 0,1% 0,1% 0,0% Intra Budgetary Revenues 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,6% Budgetary revenues 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% Source: Research data.
18 18 Table 4 Composition of Budgetary Expenditures of MG. Expenses Current expenses 89,4% 89,6% 92,4% 91,0% 87,6% 86,5% 87,3% 85,5% 81,5% Personnel and social charges 48,5% 48,4% 49,0% 48,0% 44,8% 44,0% 44,0% 42,4% 39,9% Interest and indebtness 6,9% 5,8% 6,2% 6,3% 6,5% 6,6% 6,6% 6,5% 5,5% Other Current expenses 34,1% 35,4% 37,2% 36,6% 36,2% 35,8% 36,7% 36,6% 36,2% Capital Expenses 10,6% 10,4% 7,6% 9,0% 12,4% 13,5% 12,7% 14,5% 14,7% Investments 3,8% 4,2% 3,1% 5,1% 8,0% 9,3% 8,7% 9,5% 8,9% Financial inversions 2,8% 3,5% 2,3% 1,9% 2,8% 2,5% 2,6% 3,7% 3,1% Amortization of loans 2,8% 2,3% 2,2% 2,0% 1,6% 1,7% 1,4% 1,3% 2,7% Other Capital expenses 1,2% 0,4% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Intra budgetary expenditures 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,8% Personnel and social charges 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,8% Budgetary Expenditures 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% Source: Research data. Table 5 Evolution of the accounts that make up the Budgetary Revenues. Revenues Current Revenues 100% 95% 98% 107% 119% 130% 142% 162% 149% Net Tax Revenues 100% 101% 97% 103% 115% 125% 136% 151% 142% Revenue Contributions 100% 114% 115% 131% 135% 145% 155% 156% 79% Asset revenues 100% 81% 113% 169% 278% 409% 561% 602% 639% Agricultural and cattle raising revenues 100% 1885% 7759% 13784% 17664% 23488% 22358% 24724% 21977% Industrial revenues 100% 89% 133% 142% 158% 155% 192% 154% 148% Services revenues 100% 108% 114% 105% 110% 105% 105% 130% 130% Net current transfers 100% 82% 109% 118% 129% 143% 151% 184% 182% Other net current transfers 100% 46% 51% 71% 79% 71% 60% 129% 106% Capital revenues 100% 182% 81% 59% 61% 95% 68% 110% 164% Credit Operation 100% 114% 27% 15% 83% 321% 239% 638% 1436% Disposal of goods 100% 103% 12% 13% 23% 14% 12% 13% 8% Amortization of loans 100% 93% 82% 70% 61% 65% 71% 85% 77% Transfers of Capital 100% 463% 169% 100% 93% 130% 61% 96% 119% Other capital revenues 100% 13% 62% 55% 45% 656% 175% 145% 28% Intra Budgetary Revenues Budgetary revenues 100% 100% 98% 105% 116% 128% 138% 159% 155% Source: Research data. Table 6 Evolution of Budgetary Expenditures of MG. Expenses Current expenses 100% 97% 94% 98% 104% 114% 123% 138% 129% Personnel and social charges 100% 97% 92% 95% 98% 107% 115% 126% 117% Interest and indebtness 100% 82% 83% 89% 100% 114% 121% 136% 113% Other Current expenses 100% 100% 100% 104% 113% 124% 136% 155% 151% Capital Expenses 100% 95% 66% 82% 125% 151% 152% 198% 198% Investments 100% 108% 76% 131% 227% 294% 293% 365% 337% Financial inversions 100% 119% 73% 65% 105% 102% 114% 187% 155% Amortization of loans 100% 80% 72% 68% 61% 72% 65% 69% 138% Other Capital expenses 100% 29% 0% 0% 0% 0% 0% 0% 0% Intra budgetary expenditures Personnel and social charges Budgetary Expenditures 100% 97% 91% 96% 106% 118% 126% 145% 142% Source: Research data.