Fiscal Decentralization and Budget Control
Show Less

Fiscal Decentralization and Budget Control

Laura Von Daniels

Fiscal Decentralization and Budget Control explores possible institutional solutions to fiscal instability in countries that have traditionally been caught up in problems of over-expenditure and over-indebtedness. How can governments control spending pressure from influential groups, often representing historically grown regional interests? Drawing on a mix of statistical analyses and case studies in institutional theory, the book provides new insights on previous stabilizations in Latin America and facilitates a better understanding of common dynamics of deficits and debt accumulation.
Show Summary Details
You do not have access to this content

Chapter 5: Fiscal stabilization, subnational fiscal indiscipline and institutional reform in Brazil

Laura Von Daniels


This chapter discusses improvements in fiscal accounts and public debt-to-GDP ratios in Brazil at the national and state levels and takes a closer look at economic policies and the politics of institutional reforms from 1990 to 2006. In a nutshell, I argue that the general improvements in Brazil’s fiscal stance and public indebtedness can be explained by the government’s commitment to budgetary institutional reform, changing incentives for budget actors, both on the national and the subnational level. Under initially soft budget constraints, the high level of vertical fiscal decentralization in expenditure led to increasing fiscal problems and debt accumulation on the subnational level, creating liabilities for general government finances. After the government decided to implement stronger fiscal rules between 1997 and 1998, the subnational governments finally reached and maintained balanced budgets.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.