Fiscal Autonomy and Public Transparency

In Brazil, access to public information has been guaranteed by law since 2011 with the enactment of Law No. 12,527/2011. However, the literature indicates that the existence of a legal framework is not sufficient to ensure high levels of transparency, as this depends on institutional and fiscal conditions. In light of Fiscal Federalism Theory, this study aimed to investigate the relationship between fiscal autonomy and the level of public transparency in Brazilian municipalities. Using panel data, hypotheses were tested through multiple linear regression using the Ordinary Least Squares, Tobit, and Quantile Logit methods. The results indicate that fiscal autonomy is directly associated with the level of municipal transparency. This study contributes theoretically by employing a governmental index that encompasses both active and passive transparency, thereby expanding the analysis of public transparency in Brazil. In addition, the sample enables examination of Brazilian municipalities at the national level. From a practical standpoint, the findings may provide guidance for public policymakers, suggesting that policies aimed at increasing fiscal autonomy can have positive effects on the transparency of municipal administrations.