Reforming fiscal governance in Brazil : a path to strengthen the national IFI and fiscal rules

Abstract

The imperative role assumed by fiscal policy as a state response in different moments of crisis – either financial or health crises – explains the long and continuous debate around its best design. As in the post-2008 crisis, the frequent concern in the post-pandemic era relates to the optimal dose of stimulus and the ability of the fiscal regulatory framework to avoid excessive deficits and debt burden – a major problem in Brazil. The recommended balance between simplicity, flexibility, and enforceability is still pursued, as it seems to be an inevitable condition for such framework to succeed.