Financial incentives for public education: ICMS share transfers and school results in Ceará municipalities

Abstract

The aim was to describe the financial incentive mechanisms implemented in Ceará to improve the quality of public education, notably the Share of the Tax on Circulation of Goods and Services (ICMS), which links financial transfers to school performance and its association with the results achieved by the various municipal education systems. This innovative education policy stimulated technical and pedagogical cooperation between municipalities; promoted the improvement of educational quality indices in Ceará, especially in elementary education; strengthened the state's relevance in financing public education, its commitment to school results, and the notion of accountability. This Ceará experience serves as a national benchmark for other states, as it demonstrates that financial incentive policies for public education contribute to the strengthening of school quality and student learnings, and the promotion of equity across the various municipal education systems.