Fiscal rules in Brazil: An analysis of the new fiscal framework

Fernando de Holanda Barbosa Filho () and Mario Carvalho ()

Brazilian Journal of Political Economy, 2025, vol. 45, issue 3, 504-515

Abstract: This work analyzes the Brazilian fiscal framework and its main rules, with specialattention to the New Fiscal Framework (NAF), a rule sanctioned in 2023 to replace theSpending Cap. Based on the government’s budget restriction, we analyze the mechanismsunderlying Brazilian fiscal rules and their consequences for the sustainability of public debt.The article shows that the new proposed rule slows the adjustment process comparing withthe “ceiling spending rule”. Additionally, we show the fiscal adjustment depends heavily ontax burden increases. JEL Classification: E62; H60; O11.

Keywords: Fiscal rules; new fiscal framework; fiscal sustainability; public finance; public debt (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... ticle/view/2517/2445 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:45:y:2025:i:3:p:504-515:id:2517

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().