In Brazil the system of intergovernmental transfers is used to correct imbalances and reduce socioeconomic inequality. In this study, we evaluated the implications of the Municipal Participation Fund (FPM-Interior) on the socioeconomic development of municipalities, considering its distribution policies from 1967 to 2031. The presence of the flypaper effect in the distribution of this fund was also analyzed. And also, the relationship between intergovernmental...