Demographic transition in Brazil and the municipal participation fund

Abstract The main criterion for distributing the Municipal Participation Fund is population. This creates problems due to the absence of factors portraying the need for public spending, as the structural changes in the population caused by demographic transition are not taken into account. Population censuses are an important source for understanding demographic trends and the dynamics of resource distribution to municipalities. Thus, the study analyzes, through a quantitative approach, the variation in population and age structure of municipalities, adopting data from the 2000-2022 Censuses, considering the Fund’s distribution parameters and their possible implications. The results show that population decline and aging demand new criteria for distributing the fund’s resources.