Influence of the financial condition in the government subsidies of the brazilian states in the economic crisis scenario

Abstract

The present study aimed to verify how the indicators of the financial condition influence the granting of government subsidies by the Brazilian states in an environment of economic crisis. Considering as indicators of the financial condition of the governments, some variables inserted in the model proposed by Wang et al. (2007), namely: (i) Cash Position; (PCX) (ii) Immediate Liquidity (LQI); (iii) Current Liquidity (LQC); (iv) Operating Position (POP); (v) Surplus / Deficit per capita (SDPC); (vi) Long-Term Obligations (OLP); and (vii) Taxes per capita (TPC). The survey sample comprised the 27 federative units. The data used to compose the variables were extracted from the database of Finance do Brazil, the transparency portals of the 27 states of the federation and the portal of the Brazilian Institute of Geography and Statistics, during the period from 2010 to 2016. As a result, from the mean test, it was found that it was not possible to differentiate the grant of government subsidies (SUBG) between the analysis phases. Regarding the analysis of the hypothesis, there was a significant bias, since a PCX variable (representative of cash solvency) had no significant relation with a dependent variable (SUBG), as well as the variables LQC, POP and OLP showed an indirect (negative) relationship with subsidies. On the other hand, it was verified that the more/higher LQI, SDPC and TPC the states have more/better the capacity of the subsidies granted. The same is true of the same as the same crisis with sub-time of the governance the low progress the probour the crisis of the society the society on the actions of external directions in the end of external estate of the society.