The Brazilian states’ debt process in the federative context: an analysis from 1960 to 2016

Abstract

This article aims to discuss the determinants of debt of Brazilian states and how it has become the central element to justify adjustments of the subnational level. The paper collected information from public agencies and official government documents despite the fiscal and financial conditions of the states, as well as a historical rescue of the debt process. After the analysis of the trajectory of these debts in the period from 1960 to 2016, we observed that the Brazilian states suffered severe adjustments, incurring revenue and equity losses. The discourse of fiscal indiscipline and mismanagement of the public debt at the subnational level is incoherent to legitimize the federative crisis.

Keywords

• fiscal federalism
• state debt
• fiscal adjustment