ANALYSIS OF MUNICIPAL REVENUE AND TAX COLLECTION IN THE PROVINCIAL MUNICIPALITIES OF THE PUNO REGION, PERU 2009-2016

Abstract

The research study focuses its objective on explaining the behavior of municipal revenue and tax collection in the provincial municipalities of the Puno region - Peru, 2009-2016. From a quantitative econometric approach, random effects models were estimated with panel-type information obtained from the web portal consulta amigable of the Ministry of Economy and Finance (MEF). The results show that the transfer of financial resources, directly collected resources and municipal taxes contribute positively and statistically significantly to municipal income by 0.91%; 0.078% and 0.025%. While tax collection is positively and statistically significantly explained by directly collected resources and municipal taxes, the latter with a lower percentage of contribution. Therefore, it is concluded that transfers of monetary resources from the central government generate a negative impact on property tax collection, placing municipal governments in a situation of high fiscal vulnerability.