Constitution of Provisions and Its Impact on the Public Debt of Brazilian Capitals and States and the Federal District

This work aimed to evaluate the impact of the recognition of provisions and the implementation of NBC TSP 03 on the consolidated public debt of Brazilian subnational entities. The sample included the 26 capitals, the 26 states and the Federal District, based on data extracted from SICONFI, in the period from 2014 to 2023. The research was developed with the structuring of panel data, to verify whether the explanatory variables of this study influence the amount of public debt consolidated in period t and in t+1. The results showed that the implementation of NBC TSP 03 is one of the factors that explains the rise in public debt of subnational entities, both in period t and in t+1. It was also found that the Constitution of Provisions did not show statistical significance but was statistically negative in the case of capitals.