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e Municipalities Participation Fund is an unconditional and redistributive transfer received by the municipalitiesfrom the Brazilian federal government. Its resource allocation criteria presents inconsistencies that generate an uneven distribution of fund resources. Using the fuzzy sets mathematical instrument, this paper found a relation between the distribution of the Fund and the level of fiscal demand of the municipalities of the Brazilian state of Minas Gerais between 2000 and 2010. It was verified that most of the municipalities receive less resources than the necessary, that this problem tends to be larger in the most populous cities and that the distortion in the division of the Fund has been intensified over time. e results corroborate other evidence surrounding the distorted division of the FPM and reinforce a need to revise its criteria.

Distorções Regionais na Distribuição do Fpm: Um Estudo Aplicando Conjuntos Fuzzy em Municípios de Minas Gerais