applied reading
Under Law 11.079/2004, article 28, the aggregate of municipal PPPs cannot commit more than 5% of the annual Net Current Revenue (RCL). This tool calculates the ceiling and shows scenarios by percentage.
The commitment percentage over Net Current Revenue indicates available fiscal margin, not overall financial health. Use the table as an initial reading; a definitive analysis requires CAPAG and debt profile.
| Commitment range | Situation | Implication |
|---|---|---|
| < 1% RCL | Conservative | Ample margin for new projects. Municipality can structure PPPs without immediate fiscal restriction. |
| 1% to 3% RCL | Intermediate | Track the evolution of RCL and existing contracts. Reassess each fiscal year before new contracting. |
| 3% to 4% RCL | Watch | Fiscal strategy review needed. Consider contract restructuring or project prioritization. |
| 4% to 5% RCL | Limit | Risk of crossing the ceiling; review active contracts. New PPPs become practically unviable without renegotiation. |
| > 5% RCL | Exceeded | Loss of federal voluntary transfers and federal guarantees. Express prohibition in article 28 of Law 11.079/2004. |
The original limit set by Law 11.079/2004 was 1% of Net Current Revenue. At the time, the goal was to contain the fiscal exposure of subnational entities still taking their first steps in the Public-Private Partnership model, then newly introduced into the Brazilian legal system.
Law 12.766/2012 raised the ceiling to 3% of RCL, in response to the practical finding that the initial level made PPPs unfeasible in mid-sized municipalities, whose current revenue is structurally small relative to the cost of urban infrastructure, mobility, or public lighting projects.
Law 13.529/2017 expanded the limit to 5% of RCL, the same statute that created the Support Fund for the Structuring and Development of Concession and Public-Private Partnership Projects (FEP Caixa). The expansion was calibrated precisely to make PPPs viable in small and mid-sized municipalities, the main project-structuring bottleneck until then.
Net Current Revenue is calculated and published periodically in the mandatory fiscal reports of each federative entity, under the Fiscal Responsibility Law.
The calculation shown is the theoretical ceiling set by article 28 of Law 11.079/2004. In practice, a municipality's ability to pay depends on other equally decisive metrics: the CAPAG (Payment Capacity rating) from the National Treasury, current consolidated indebtedness, fiscal contingencies, actuarial pension risks, and the schedule of other administrative contracts.
For projects with external financing (IDB, World Bank, BNDES), an analysis by COFIEX (External Financing Commission) also applies. The tool serves as an initial triage and legal framing, never as a substitute for specialized fiscal and legal advisory for the actual structuring of a Public-Private Partnership.
Texts consolidated in the Arsenic Library, with annotations on relevant amendments.
This calculator is for informational purposes. In case of divergence, the official wording of the laws and the RCL figures published in the entity's fiscal reports prevail.
