Title Suppressed Due to Excessive Length
179
inhabitants report lower trust on their governments. Therefore, mining companies
are expected to provide what the government do not provide to the population: good
quality education, health facilities and development oportunities.
In Canaã dos Carajás, the local government fails to meet the population’s necessities regarding improvements in standards of living and sustainable development,
as the results demonstrated the public finance of the municipality is not sustainable
at all. There is only one project that specifically addresses sustainability issues, the
Municipal Fund of Sustainable Development. It aims at stimulating entrepreneurship, attracting new businesses and industries and financing educational projects. It
was created in 2017 but only in 2019 it started activities (Cruz et al. 2019; Gillet
2019). Such a project receives only 5% of the CFEM, which is 15% below the ideal
according to recommendations by the CFEM related legislation. Some respondents
are aware of the existence of the aforementioned Fund, but complained of excessive
requirements to benefit from this initiative.
5 Conclusion
This study has found that the local government in Canaã dos Carajás violates the laws
that regulate the use of CFEM, using a large share of this tax in public management
expenses. Such a share would be more beneficial if invested in sectors that generate
long-term improvements in local standards of living: education, health, sanitation,
culture, economic diversification etc.
The survey questionnaires revealed that most citizens do not trust on local government’s adequate management of the mining taxation. The analysis of the Annual
Municipal Budget Laws of the municipality indicated a clear lack of transparency
involving public finance, contributing to the low levels of social trust in government.
To improve this, the government should be more responsive to the community it
serves, enhancing transparency in public finance and committing to obey the law, by
properly investing the CFEM.
The results also indicated mixed opinions regarding improvements in social infrastructure. Most respondents were dissatisfied with sanitation in town, even though they
lived in different neighborhoods. Improvements in other topics (health, education and
urban infrastructure) had more balanced opinions. Nevertheless, most respondents
attributed such improvements to actions taken directly by mining companies, not by
the local government.
Tax collection from mining activities shall be over someday, as mineral and ores
are non-renewable natural resources. Therefore, it must be properly and sustainably
invested to generate income in the long-term and improve life conditions in the
municipality. In such a small town, the benefits from the adequate use of CFEM
could be easily spread.
The legislature in Canaã dos Carajás should be more proactive, demanding transparency from the executive power in its annual budget reports and holding the government responsible for financial irregularities. The academic community should be
179
inhabitants report lower trust on their governments. Therefore, mining companies
are expected to provide what the government do not provide to the population: good
quality education, health facilities and development oportunities.
In Canaã dos Carajás, the local government fails to meet the population’s necessities regarding improvements in standards of living and sustainable development,
as the results demonstrated the public finance of the municipality is not sustainable
at all. There is only one project that specifically addresses sustainability issues, the
Municipal Fund of Sustainable Development. It aims at stimulating entrepreneurship, attracting new businesses and industries and financing educational projects. It
was created in 2017 but only in 2019 it started activities (Cruz et al. 2019; Gillet
2019). Such a project receives only 5% of the CFEM, which is 15% below the ideal
according to recommendations by the CFEM related legislation. Some respondents
are aware of the existence of the aforementioned Fund, but complained of excessive
requirements to benefit from this initiative.
5 Conclusion
This study has found that the local government in Canaã dos Carajás violates the laws
that regulate the use of CFEM, using a large share of this tax in public management
expenses. Such a share would be more beneficial if invested in sectors that generate
long-term improvements in local standards of living: education, health, sanitation,
culture, economic diversification etc.
The survey questionnaires revealed that most citizens do not trust on local government’s adequate management of the mining taxation. The analysis of the Annual
Municipal Budget Laws of the municipality indicated a clear lack of transparency
involving public finance, contributing to the low levels of social trust in government.
To improve this, the government should be more responsive to the community it
serves, enhancing transparency in public finance and committing to obey the law, by
properly investing the CFEM.
The results also indicated mixed opinions regarding improvements in social infrastructure. Most respondents were dissatisfied with sanitation in town, even though they
lived in different neighborhoods. Improvements in other topics (health, education and
urban infrastructure) had more balanced opinions. Nevertheless, most respondents
attributed such improvements to actions taken directly by mining companies, not by
the local government.
Tax collection from mining activities shall be over someday, as mineral and ores
are non-renewable natural resources. Therefore, it must be properly and sustainably
invested to generate income in the long-term and improve life conditions in the
municipality. In such a small town, the benefits from the adequate use of CFEM
could be easily spread.
The legislature in Canaã dos Carajás should be more proactive, demanding transparency from the executive power in its annual budget reports and holding the government responsible for financial irregularities. The academic community should be