Fiscal adjustment and non-financial expenditures of the public sector

Vol. 10 No. 1 (1990)

Jan-Mar / 1990
Published January 1, 1990
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Werneck, Rogério L. Furquim. 1990. “Fiscal Adjustment and Non-Financial Expenditures of the Public Sector”. Brazilian Journal of Political Economy 10 (1):133-45. https://doi.org/10.1590/0101-31572023-0522.

Fiscal adjustment and non-financial expenditures of the public sector

Rogério L. Furquim Werneck
Departamento de Economia da Pontifícia Universidade Católica do Rio de Janeiro – PUC. Rio de Janeiro/RJ - Brasil.
Brazilian Journal of Political Economy, Vol. 10 No. 1 (1990), Jan-Mar / 1990, Pages 133-145

Abstract

This paper presents an analysis of the present public-sector financial crisis in
Brazil and the possible pathways to fiscal adjustment. It points out some important issues
involved in the design and implementation of the fiscal adjustment in the country which deserve
further research effort. The paper contains five sections. The first covers the origins of
the financial crisis that has been faced by the public sector. The role of the fiscal adjustment
in both macroeconomic stabilization and growth resumption is analyzed in the second section.
The third looks into the political economy of the fiscal adjustment, raising some issues
which helps to understand the difficulties which have been hampering an adjustment of the
magnitude that is required. In the fourth section distinct pathways to the fiscal adjustment
are explored, with emphasis on alternatives to the simple increase in the tax burden. The last
section presents some final comments.

JEL Classification: H63; H20.


Keywords: Fiscal adjustment public debt public finance