TY - JOUR AU - Giambiagi, Fábio AU - Soares, José Carlos Gomes PY - 1992/07/01 Y2 - 2024/03/29 TI - Government consumption, foreign interest and repressed investment: the problem of external debt revisited JF - Brazilian Journal of Political Economy JA - BJPE VL - 12 IS - 3 SE - DO - 10.1590/0101-31571992-0569 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1423 SP - 344-359 AB - <p>This paper analyses the evolution of Brazilian public sector expenditures during<br />the second half of the 1980’s. The interpretation according to which the fiscal crisis is<br />exogenous and caused by the external debt interest is criticized. The great increase in current<br />expenditures after 1984, together with a budget restriction that limited public investment is<br />discussed. Based on it, public sector consumption and not external debt interest payments is<br />considered the most important factor responsible for the public investment trajectory over<br />time during the last five years.</p><p><strong>JEL Classification:</strong> F31; F34; H63.</p> ER -