Preconditions for Establishing Structural Fiscal Balances in Latin America and the Caribbean: The Case of Brazil

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Levy, Paulo
Jul 2013
Fiscal policy has been at the center of Brazil's economic dynamics and performance for more than 30 years. In this line, the approval and implementation of a Fiscal Responsibility Law in 2000 was a key step in supporting fiscal sustainability and the transparency of fiscal accounts. Despite these improvements, removing the uncertainties and addressing the imbalances that still persist in fiscal policy-a long-term trend of rising expenditures and tax burden-will be a crucial step when considering further modifications to the current framework, especially regarding the introduction of a structural fiscal balance rule.