Impact of meteorological drought and public spending on the municipal development index

This article aims to study the relationship between meteorological drought and public expenditure with the Firjan Municipal Development Index (IFDM_ER) in Brazilian regions in the period between 2005 and 2016. For this, the conceptual framework of drought, municipal development and public and empirical spending was used as a theoretical scope with regression in panel format as a methodological procedure. In this study, a database composed of socioeconomic information from 5461 Brazilian municipalities was used, with the IFDM_ER Index as the dependent variable, drought as the independent variable of interest, through the SPI classification, and public spending, population and time as independent control variables. The result was a statistically significant relationship between drought and the dependent variable in the four Brazilian regions: Northeast, Southeast, North and South, except for the Midwest of the country. On the other hand, public expenditures showed different results in the Municipal Development Index in the 5 regions of the country.