Economical and financial self-sufficiency of Urban Solid Waste (USW) management services: an exploratory case study in Juiz de Fora

Abstract

Urban solid waste (USW) management in urban areas poses a significant challenge for municipal governance, particularly when considering the need to implement fees to finance these services. Despite the establishment of the National Solid Waste Policy (PNRS) in 2010 and legislation requiring fees for waste management, specific taxation is not yet a reality in Brazil. When it does occur, it is insufficient to cover actual expenses. In this context, this study characterizes the economic and financial sustainability of the municipality of Juiz de Fora, Minas Gerais, Brazil. Statistical tests, including Kruskal-Wallis for comparison and Spearman for correlation, were conducted on financial variables from the municipality, available on the digital platforms of the National Sanitation Information System (SNIS) and the Brazilian Institute of Geography and Statistics (IBGE) for the period 2002 to 2022. Analysis of the variables revealed a discrepancy between municipal revenues and actual resource spent on USW management, as seen in other municipalities. Budgeted and collected revenues showed similar values throughout the study period, whereas expenditures remained significantly higher, resulting in an average financial self-sufficiency of 68.10%. Correlations between financial self-sufficiency and the other variables analyzed were not statistically significant, indicating that this indicator cannot be explained solely by the financial and economic variables considered. The results show that, although the municipality has implemented charging mechanisms and planning instruments for the sector, achieving full cost recovery for USW management services remains a challenge.

Keywords: PNRS; basic sanitation policy; municipal government; indicators; financial sustainability.