Multicriteria Decision Support Model for Royalty Distribution in Municipal Secretariat Projects: A Portfolio Approach in the Public Sector of a City in Rio Grande do Norte
Royalties, Public Management, Project Prioritization, MCDA
This research aims to propose a methodology for prioritizing projects in municipal public management in the interior of Rio Grande do Norte. Royalties are financial compensations owed to the Union, States, the Federal District, and Municipalities for the exploration and production of oil, natural gas, and other fluid hydrocarbons. According to data from ANP, from 2017 to 2023, Rio Grande do Norte, along with its municipalities, collected nearly 4 billion reais in royalties, due to transfers from oil and natural gas production participations. The collection and distribution of royalties follow a specific and detailed legal hierarchy, being paid monthly, in national currency, from the date of commencement of commercial production in each field. However, their application is not clearly defined, as there are no legal provisions guiding the use of these resources, leaving a broader margin of freedom for public managers in terms of how the funds are allocated. Municipal public management faces growing challenges due to the reduction in royalty transfers, an important source of revenue for the municipality. In this context, it becomes essential to improve the resource allocation process, ensuring that funds are directed to priority projects that generate the greatest impact for the population. Thus, this research proposes the development of a multicriteria decision support model for project prioritization, aiming to support municipal public planning, promoting greater efficiency, transparency, and alignment with local needs.