THE THE INFLUENCE OF ECOLOGICAL ICMS (ICMS-E) ON SANITATION EXPENDITURE

A COMPARATIVE ANALYSIS WITH SUL MATO GROSSENSES MUNICIPALITIES

Abstract

The aim of this work was to carry out a comparative analysis of municipal sanitation expenditures after their inclusion as a pass-through criterion for the ICMS-e in the State of Mato Grosso do Sul. Data on sanitation expenditures of forty-seven municipalities in Mato Grosso do Sul with Cerrado area greater than 50%. The time frame was from 2003 to 2017, the expenditure grouped into three five-year intervals (2003 to 2007; 2008 to 2012 and 2013 to 2017). The analytical instrument used was the Student's t-test for independent samples, with a 95% confidence interval, that is, with a confidence level of 5% (p <0.05). The Student's t-test showed that there is a statistically significant difference in the average municipal public spending on the sanitation function from 2008 to 2012 compared to the period from 2013 to 2017 (t = -2.880 (gl = 4.357) and p = 0.041), a result corroborated by the study by Ferreira, et al., (2015). This evidence reveals that there is a possibility that municipal spending on sanitation is influenced by environmental public policies such as the differentiated transfer of ICMS-e. The t test result of the two five-year periods preceding the implementation of sanitation as a criterion for passing on the ICMS-e (2003 to 2007 and 2008 to 2012), didn’t show a statistically significant difference (t = -0.341 (gl = 8) ep = 0.742). The two periods are not marked by high municipal expenditure in the sanitation function, so it is natural that there are no great differences in their averages.