MULTICRITERION DECISION SUPPORT MODEL FOR ROYALTIES DISTRIBUTION IN MUNICIPAL SECRETARY PROJECTS: A PORTFOLIO APPROACH IN THE PUBLIC SECTOR OF A CITY IN RIO GRANDE DO NORTE / BRAZIL
Royalties; Public Management;Project Prioritization;MCDA; Decision
This research aims to propose a methodology for prioritizing projects within the public administration of a municipality located in the interior of Rio Grande do Norte, Brazil. Royalties are financial compensations owed to the Federal Government, States, the Federal District, and Municipalities for the exploration and production of oil, natural gas, and other fluid hydrocarbons. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), between 2017 and 2023, Rio Grande do Norte and its municipalities collected nearly 4 billion reais in royalties from transfers related to oil and natural gas production.
The collection and distribution of royalties follow a specific and detailed legal hierarchy and are paid monthly, in the national currency, from the date of commencement of commercial production of each field. However, their application is not clearly defined, since there are no legal provisions that regulate the use of these resources, leaving a broader margin of discretion for public managers regarding the allocation of the amounts received.
Municipal public administration faces increasing challenges due to the reduction in transfers from royalties, which constitute an important source of municipal revenue. In this context, improving the resource allocation process becomes essential, ensuring that funds are directed toward priority projects capable of generating greater impact for the population.
Therefore, this research proposes the development of a multicriteria decision-making model to support project prioritization, with the objective of strengthening municipal public planning by promoting greater efficiency, transparency, and alignment with local needs.