The legal nature of public money and the possibility of intervention by the Courts of Auditors in the suspension of payment in public contracts.

Abstract

This article aims to deepen the theoretical and practical analysis of a subject that, although central to the understanding of public finance and state oversight, still lacks systematic treatment in Brazilian legal doctrine and case law: the legal nature of public funds and its implications for the actions of Courts of Accounts, particularly regarding the possibility of suspending payments in administrative contracts. It is based on the premise that a precise definition of the concept of public funds goes beyond its merely economic dimension and stands as an essential foundation for delineating the constitutional competencies assigned to external control. By addressing the payment phase as an autonomous stage of contractual execution—governed by its own legal regime and subject to specific legal and formal requirements—this article argues that the actions of Courts of Accounts, when adopting precautionary measures aimed at suspending disbursements, do not infringe upon legislative authority but instead serve as a legitimate instrument for safeguarding the public interest. Normative and jurisprudential analysis shows that, even in the face of provisional suspension of payments, the contractual relationship remains intact, thus fostering greater legal certainty and stability for the parties involved. This research contributes to consolidating a systematic interpretation of the role of Audit Courts, highlighting that the oversight of public expenditures, including at the final stage of financial execution, must comply with the constitutional principles of legality, impersonality, morality, and efficiency. Ultimately, the study provides both theoretical and operational tools to support a more precise, reasoned, and proportionate exercise of external control in the context of public procurement.