The fiscal crisis: what happened recently?

Vol. 17 No. 1 (1997)

Jan-Mar / 1997
Published January 1, 1997
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Giambiagi, Fabio. 1997. “The Fiscal Crisis: What Happened Recently?”. Brazilian Journal of Political Economy 17 (1):65-85.

The fiscal crisis: what happened recently?

Fabio Giambiagi
do Banco Nacional de Desenvolvimento Econômico e Social – BNDES, Rio de Janeiro/RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 17 No. 1 (1997), Jan-Mar / 1997, Pages 65-85


This article updates the discussion of the fiscal situation of the central government
in Brazil. It is shown that, between 1988 and 1995, the National Treasury revenues
increased almost 3% of the GDP. Consequently, during 1990-1995, the central government
exhibited a fiscal equilibrium, a better result than the average deficit of 2.8% of GDP observed
in 1985-1989. Despite these numbers, some problems of the current situation of the
fiscal accounts are highlighted and the increasing weight of the wages and Social Security
expenditures, (a) which together jumped from 47% to 60% of the revenues between 1988
and 1995, (b) is pointed out as the most important reason for the budget constraint of the
majority of the ministries.

JEL Classification: E62.

Keywords: Fiscal policy public debt budget public expenditure