| Based on the regulation about the compensatory payment for using the water resources and land flooding for the generation of electric power, this study was carried out to evaluate the effect of the "extra" financial resource – financial compensations and hydroelectric royalties – in budget revenue formation and in the public expenses determination of the receiving municipalities in Minas Gerais. From the discussions about the determinants of the government expenses the public county accounts were estimated regressions with data panel for each of the municipal expenses under consideration (investment, housing and urbanization, health and sanitation, education and culture), and proportion indexes and growth rates of expenses and incomes were calculated. The... |
