Abstract
This essay aims to analyze the institutional factors that lead to a problem of the fiscal structure, which given the lack of capacity and institutional dysfunction and the size of the public sector, require financing dependent on federal participations. What it impacts the weakness of controls and the application of the Law, for being dependent on the Federation. In the statistical evidence, it was found that there are weaknesses and dysfunction in some states, in the face of risks and the smaller margins of maneuver, when it comes to evaluating the financing of local governments and the limited forms of local collection.
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