## Brazil: Technical Assistance Report-Supporting Implementation of the Expenditure Rule Through Public Financial Management Reforms

_IMF Staff Country Reports, October 4, 2017_

## Source details

**Canonical URL:** [Brazil: Technical Assistance Report-Supporting Implementation of the Expenditure Rule Through Public Financial Management Reforms](https://www.imf.org/en/publications/cr/issues/2017/10/04/brazil-technical-assistance-report-supporting-implementation-of-the-expenditure-rule-through-45275)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/10/04/brazil-technical-assistance-report-supporting-implementation-of-the-expenditure-rule-through-45275/index.md)
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## Bibliographic details
- Published: October 4, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484321218.002

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### Executive summary and purpose
- The report discusses recommendations for supporting implementation of the expenditure rule through public financial management reforms in Brazil.
- Primary objective: address rigidities in the budget and create more fiscal space to support the expenditure rule.

### Key findings on budget rigidities and needed processes
- Rigidities in the budget limit flexibility and fiscal space.
- Authorities need to establish processes to:
  - build flexibility; and
  - improve efficiency.
- Specific areas identified for review include:
  - mandatory expenditures; and
  - indexation practices.

### Recommended reforms and policy measures
- Review mandatory expenditures and indexation practices to reduce automatic growth in expenditures.
- Implement a rolling program of spending reviews focused on large and fast-growing programs.
- Introduce efficiency dividends on ministries’ operational expenses to incentivize cost savings.
- Begin developing a medium-term budget framework to support strategic decision making and align annual budgets with longer-term priorities.

### Implementation priorities
- Prioritize reforms that increase budget flexibility without undermining core service delivery.
- Sequence reforms to pair expenditure reviews with the introduction of a medium-term budget framework.
- Apply efficiency dividends and operational spending reforms across ministries to generate recurrent savings.

### Thematic scope (as presented)
- Budget planning and preparation
- Expenditure and expenditure policy
- Fiscal policy and fiscal stance
- Macroeconomic and fiscal forecasts
- Public financial management (PFM)

*Source: Brazil: Technical Assistance Report-Supporting Implementation of the Expenditure Rule Through Public Financial Management Reforms, International Monetary Fund, October 4, 2017.*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17292.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17292.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/10/04/brazil-technical-assistance-report-supporting-implementation-of-the-expenditure-rule-through-45275_