Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1367
This paper tried to evaluate the increasing of the federative public spending associated with the creation of a new State within the Brazilian Federation. The estimates pointed out that each new State increases the federative expenditure by R$ 832 millions. It was also estimated that Brazilian States expend, in average, R$ 564,69 with each citizen and that each Real produced in an Brazilian State requires a State expenditure of 7,5 cents of Real. It was also found that the State's area and the number of municipalities contained in a State do not show any correlation with the State expenditure.