The first Article of the Federal Constitution of Brazil (1988) declares that the Federative Republic of Brazil is formed by the indissoluble union of States and Municipalities (municípios), as well as the Federal District. As provided for in the Constitution, the political and administrative organization of the Federative Republic of Brazil includes the Union, States, Federal District, and Municipalities as autonomous governance institutions. Brazilian subnational governments play an important role in the public sector and account for roughly 25% of GDP. The three levels of government are involved in virtually all government functions as part of a system of cooperative federalism, On the expenditure side, the (federal) Fiscal Responsibility Law sets floors and ceilings on how much subnational governments should spend on functions like education, health, or on items like personnel and debt. Within those limits, subnational governments have a high degree of autonomy. States and municipalities have a considerable degree of fiscal autonomy from the revenue side. In the case of states, own-source and shared revenues represent between 40 and 60% of total revenues, while for municipalities this figure ranges between 30% and 70% of total revenues.
Subnational governance structure
The federal constitution provides the basis for Brazil’s intergovernmental structure at the state and local levels. Brazil is divided in 26 provinces plus a federal district and 5,570 municipalities. There is high degree of symmetry in Brazil’s federal system, as the federal constitution prescribes the overall political structure of state and municipal governments, and uniformly assigns powers and functional responsibilities across the three levels.
Nature of subnational governance institutions
State governments and municipal governments in Brazil are fully devolved subnational governments with extensive autonomy and authority. Despite features of cooperative multilevel governance intended to ensure that different government levels work together in a collaborative manner, government units at each level have their own elected political leadership; their own public administrations (including its own officers and staff), and control over their own financial resources.
Functional assignments
Assignment of functions and responsibilities in Brazil across levels of governments is complicated, as the three levels are involved in many of the same government functions in a collaborative manner. Functions like education and health are concurrent among the three levels of government, with little clarity as to where the responsibilities for each level of government begin or end. Sometimes details of functional responsibilities are defined at the state level or in bilateral agreements between the federal government and the respective subnational unit. Generally, however, (de facto) functional assignments follow the subsidiarity principle, with municipalities being the frontline provider of key public services, such as education and public health services. Water and electricity provision are state and municipal functions depending on the states, but the federal government provides those services in some locations in the Amazon.
LoGICA Assessments
LoGICA Intergovernmental Profile: Brazil 2023 (Excel)
Additional resources
Country sheet: Brazil. Panorama de las relaciones fiscales entre niveles de gobierno de países de América Latina y el Caribe. 2022.
Brazil (The Forum of Federations Handbook on Local Government in Federal Systems, 2024)
Local government country profile: Brazil (UN Women)
Brazil Country Profile (World Observatory on Subnational Governance and Investment, OECD/UCLG)
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Last updated: April 6, 2024