Matching fiscal responsibility with social responsibility in the management of small municipalities: a case study of mendesin the Rio de Janeiro State

Abstract

This article is a descriptive and quantitative case study about the financial management of Mendes, a small municipality with modest GDP in the Rio de Janeiro state. It identifies strategies applied by City Hall to achieve satisfactory results in the fiscal, social and managerial areas. Records from 2005 to 2007 were used to obtain information on the municipal situation regarding fiscal and social responsibilities. Data were analyzed by using the Kohama quotients, quotients of the financial situation, of the permanent situation and of the assets; the horizontal and vertical analysis and the model proposed by Fleuriet, Kehdy and Blanc (1978). Analysis shows that Mendes has achieved good results according to the Fiscal and Social Responsibility Index and that changes in the financial structure and balance sheets have been positive. In summary it is possible for a small Brazilian municipality to achieve fiscal responsibility without undermining the ability to make social and managerial investments