Abstract
This research critically analyzed the investments of the Financial Compensation for Exploration of Mineral Resources (CFEM), a Brazilian mining taxation, in Canaã dos Carajás (Pará, Brazil). This municipality is the largest recipient of investments in mining industry, and the national second largest recipient of CFEM. However, there is no transparency in the public finance of the municipality, and its standard of living needs improvements. Survey questionnaires revealed some citizens do not trust on local government’s adequate management of CFEM. Further bibliographic reviews and analysis of secondary data from national censuses and the Annual Municipal Budget Law demonstrated the local government violates national regulations regarding specific mandatory shares and areas of investment of resources from mining taxation. Thus, the CFEM is not sustainably invested. It should diversify local economic production and improve quality education, science and entrepreneurship in the municipality, so its inhabitants may enjoy good quality of life even after the end of mining exploration. This research highlights the importance of sustainability in public finance, and the need of strengthening compliance with public finance laws at the municipality level to promote economic and social sustainability in localities that depend upon the exploration of finite natural resources.
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Cruz, T.L. (2021). (Non-)compliance with Public Finance Laws, Sustainability and Social Responsibility: A Critical Analysis of the Use of Mining Taxation in Canaã dos Carajás (Pará, Brazil). In: Leal Filho, W., Tortato, U., Frankenberger, F. (eds) Integrating Social Responsibility and Sustainable Development. World Sustainability Series. Springer, Cham. https://doi.org/10.1007/978-3-030-59975-1_11
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