Budgets of the city of São Paulo: the Vargas Government and redemocratization (1930-1950)

Abstract

The study examines the municipal finances of São Paulo between 1889 and 1950, based on a detailed analysis of legislation and municipal budgets. During the Empire, Municipal Councils had little autonomy, being subordinate to Provincial Assemblies. With the Republic, municipalities gained administrative autonomy but remained dependent on state decisions to define their fiscal structure. The Revolution of 1930 brought significant federal government intervention, dissolving legislative bodies and transferring power to appointed officials. The 1934 Constitution restored municipal autonomy and included the Property Tax in municipal revenue. In 1937, the Estado Novo (New State) once again restricted municipal autonomy, maintaining the fiscal structure. The deposition of Vargas in 1945 and the 1946 Constitution once again guaranteed municipal elections and restored their budgetary autonomy. Municipal revenue grew, reflecting the industrial and population development of São Paulo, which became the main economic hub of Brazil.