Brazil: Technical Assistance Report-Strengthening Fiscal Responsibility at the Subnational Level
IMF Staff Country Reports, September 1, 2020
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- Brazil: Technical Assistance Report-Strengthening Fiscal Responsibility at the Subnational Level
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Bibliographic details
- Published: September 1, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513551760.002
Executive summary and context
- Publication date: September 1, 2020
- Pages: 43
- Issue: 227
- Series: Country Report No. 2020/227
- DOI: https://doi.org/10.5089/9781513551760.002
- ISBN: 9781513551760
- ISSN: 1934-7685
- Volume: 2020
- Stock No: 1BRAEA2020001
- Core concern: Fiscal challenges of Brazil’s states and municipalities (subnational governments, SNGs) and implications for the economy and federal public finances.
Key findings
- SNGs account for a large share of public expenditures, including public investment.
- The fiscal problems of SNGs can hamper the economic recovery and the public finances of the federal government.
- In recent years, many states and municipalities have been struggling with high debt or severe liquidity pressures.
- Some SNGs have already defaulted on part of their debt and are running payment arrears (wages and suppliers).
- The federal government has already provided a substantial package of financial support through debt service relief.
Thematic scope and subjects covered
- Arrears
- Asset and liability management
- Debt limits
- Expenditure
- Fiscal policy
- Fiscal rules
- PFM legal and regulatory frameworks
- Public financial management (PFM)
- Revenue administration
Policy implications and recommendations (as emphasized by the report)
- Strengthen fiscal responsibility at the subnational level to protect core public services and public investment.
- Address high debt and liquidity pressures among states and municipalities to reduce risk of defaults and arrears.
- Coordinate federal support (including debt service relief) with measures to restore subnational fiscal sustainability.
- Enhance PFM legal and regulatory frameworks and fiscal rules at the subnational level to improve debt limits, asset and liability management, and arrears prevention.
- Improve revenue administration and expenditure control at SNG level to bolster fiscal outcomes.
Metadata for reference
- Format: IMF Staff Country Reports
- Also available in português
International Monetary Fund. Fiscal Affairs Dept. "Brazil: Technical Assistance Report-Strengthening Fiscal Responsibility at the Subnational Level", IMF Staff Country Reports 2020, 227 (2020).
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- 1braea2020001