Brazil : Issues in Fiscal Federalism
The globalization of financial markets, has increased international pressure on the federal governments to maintain a hard budget constraint, with respect to sub-national governments. Because growth in sub-national deficits undermines investor conf...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
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Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/06/1807519/brazil-issues-fiscal-federalism http://hdl.handle.net/10986/15417 |
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okr-10986-15417 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FISCAL FEDERALISM FISCAL DEFICITS FISCAL MANAGEMENT FINANCIAL MECHANISMS GLOBALIZATION BUDGET CONTROL SUBNATIONAL GOVERNMENT INVESTOR CONFIDENCE DEBT CRISIS DEBT MANAGEMENT FOREIGN INVESTMENTS POLITICAL BIAS REGULATORY FRAMEWORK MARKET ECONOMY INSTITUTIONAL MANAGEMENT BOND REGULATION BANKING SYSTEMS CREDIT EFFECTIVENESS PRIVATE CAPITAL FLOWS ACCESS TO CREDIT INTEREST RATE PARITY INFRASTRUCTURE FUNDING RATE OF RETURN REGULATION MACROECONOMIC STABILITY SUBSIDIES GOVERNMENT GUARANTEES PRIVATE BANKS FISCAL REFORMS PENSION SYSTEMS LIABILITIES (ECONOMIC) ASSETS AUTHORITY AUTONOMY BANKING SECTOR BLOCK GRANTS BOND MARKETS BORROWING BUDGET DEFICIT BUDGET LIABILITIES CAPITAL CITIES CAPITALIZATION CENTRAL GOVERNMENT CIVIL SERVICE COALITIONS COMMERCIAL BANKS CONSTITUENCY CONSTITUTION CONSTITUTIONS COUNCILS COURT SYSTEM DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECREE DEMOCRACY DISTRICTS ELECTED OFFICIALS EMPLOYMENT EXPENDITURE EXPENDITURE ASSIGNMENT EXPENDITURE RESPONSIBILITIES FEDERAL GOVERNMENT FEDERALISM FINANCIAL CONTROL FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL FISCAL CONTROLS FISCAL FEDERALISM FISCAL POLICY FISCAL RESPONSIBILITY FISCAL YEAR FOREIGN INVESTMENT FOREIGN TRADE GOVERNMENT BANKS GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS IMPEACHMENT INFLATION INSURANCE INTEREST RATES INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LACK OF ACCOUNTABILITY LAWS LEGISLATION LEGISLATURES LEVEL PLAYING FIELD LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL TAX LOCAL TAXES MACROECONOMIC STABILITY MANDATES MATURITY MEMBER STATES MONARCHY MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL SERVICES MUNICIPALITIES MUNICIPALITY NATIONAL LEVEL PARTY AFFILIATION PENSIONS POLITICAL CRISIS POLITICAL ELITES POLITICAL POWER POLITICIANS POPULISM PRESIDENCY PRESIDENTIAL CANDIDATES PRESIDENTIAL ELECTIONS PRESIDENTS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRIVATIZATION PROCEEDS PROVISIONS PUBLIC DEBT PUBLIC EMPLOYMENT PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PUBLIC UTILITIES PUBLIC WORKS RETIREMENT REVENUE ASSIGNMENT REVENUE SHARING REVENUE SOURCES SAVINGS SAVINGS SCHEMES SENATE SOCIAL ASSISTANCE SOCIAL SECURITY SOVEREIGNTY SPECIALIZED BANKS STATE ASSEMBLIES STATE BONDS STATE GOVERNORS STATE PARTICIPATION STATE REVENUE STRUCTURE OF GOVERNMENT SUBNATIONAL DEFICITS SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX ASSIGNMENT TAX BURDEN TAX REFORM TAX REVENUE TAX SHARING TAX SYSTEM TREASURY TURNOVER TAXES UNFUNDED MANDATES UTILITIES VOTING WAGES WATER SUPPLY |
| spellingShingle |
FISCAL FEDERALISM FISCAL DEFICITS FISCAL MANAGEMENT FINANCIAL MECHANISMS GLOBALIZATION BUDGET CONTROL SUBNATIONAL GOVERNMENT INVESTOR CONFIDENCE DEBT CRISIS DEBT MANAGEMENT FOREIGN INVESTMENTS POLITICAL BIAS REGULATORY FRAMEWORK MARKET ECONOMY INSTITUTIONAL MANAGEMENT BOND REGULATION BANKING SYSTEMS CREDIT EFFECTIVENESS PRIVATE CAPITAL FLOWS ACCESS TO CREDIT INTEREST RATE PARITY INFRASTRUCTURE FUNDING RATE OF RETURN REGULATION MACROECONOMIC STABILITY SUBSIDIES GOVERNMENT GUARANTEES PRIVATE BANKS FISCAL REFORMS PENSION SYSTEMS LIABILITIES (ECONOMIC) ASSETS AUTHORITY AUTONOMY BANKING SECTOR BLOCK GRANTS BOND MARKETS BORROWING BUDGET DEFICIT BUDGET LIABILITIES CAPITAL CITIES CAPITALIZATION CENTRAL GOVERNMENT CIVIL SERVICE COALITIONS COMMERCIAL BANKS CONSTITUENCY CONSTITUTION CONSTITUTIONS COUNCILS COURT SYSTEM DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECREE DEMOCRACY DISTRICTS ELECTED OFFICIALS EMPLOYMENT EXPENDITURE EXPENDITURE ASSIGNMENT EXPENDITURE RESPONSIBILITIES FEDERAL GOVERNMENT FEDERALISM FINANCIAL CONTROL FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL FISCAL CONTROLS FISCAL FEDERALISM FISCAL POLICY FISCAL RESPONSIBILITY FISCAL YEAR FOREIGN INVESTMENT FOREIGN TRADE GOVERNMENT BANKS GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS IMPEACHMENT INFLATION INSURANCE INTEREST RATES INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LACK OF ACCOUNTABILITY LAWS LEGISLATION LEGISLATURES LEVEL PLAYING FIELD LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL TAX LOCAL TAXES MACROECONOMIC STABILITY MANDATES MATURITY MEMBER STATES MONARCHY MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL SERVICES MUNICIPALITIES MUNICIPALITY NATIONAL LEVEL PARTY AFFILIATION PENSIONS POLITICAL CRISIS POLITICAL ELITES POLITICAL POWER POLITICIANS POPULISM PRESIDENCY PRESIDENTIAL CANDIDATES PRESIDENTIAL ELECTIONS PRESIDENTS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRIVATIZATION PROCEEDS PROVISIONS PUBLIC DEBT PUBLIC EMPLOYMENT PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PUBLIC UTILITIES PUBLIC WORKS RETIREMENT REVENUE ASSIGNMENT REVENUE SHARING REVENUE SOURCES SAVINGS SAVINGS SCHEMES SENATE SOCIAL ASSISTANCE SOCIAL SECURITY SOVEREIGNTY SPECIALIZED BANKS STATE ASSEMBLIES STATE BONDS STATE GOVERNORS STATE PARTICIPATION STATE REVENUE STRUCTURE OF GOVERNMENT SUBNATIONAL DEFICITS SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX ASSIGNMENT TAX BURDEN TAX REFORM TAX REVENUE TAX SHARING TAX SYSTEM TREASURY TURNOVER TAXES UNFUNDED MANDATES UTILITIES VOTING WAGES WATER SUPPLY World Bank Brazil : Issues in Fiscal Federalism |
| geographic_facet |
Latin America & Caribbean Brazil |
| description |
The globalization of financial markets,
has increased international pressure on the federal
governments to maintain a hard budget constraint, with
respect to sub-national governments. Because growth in
sub-national deficits undermines investor confidence, the
federal government is under pressure to enforce the new debt
control system, if only to keep the foreign investment
flowing, and, political support for enforcement of the
fiscal rules may also have increased. Nevertheless, there is
the case for shifting the system of sub-national debt
control from one that depends on central regulation, to one
that relies more on markets. The report looks at
institutional models for doing so, which include bond
markets, and specialized banks. If the market model is to
prevail in Brazil, changes in the credit environment must
occur: private long term funds must become available, at
interest rates compatible with infrastructure investment
returns. But continued macroeconomic stability, and
declining federal deficits are required before implementing
the market model; private lenders must have a level playing
field, and, limitations on subsidized government lending is
necessary to attract private sector interest; the federal
government should refrain from extending implicit guarantees
on private loans to sub-national governments, while
establishing a pattern of non-interference in sub-national
defaults to private banks; and, reforms should remove
obstacles that prevent sub-national governments from
becoming creditworthy. Likewise, the growing state pension
liabilities challenges the present system of fiscal controls. |
| format |
Economic & Sector Work :: Pre-2003 Economic or Sector Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Brazil : Issues in Fiscal Federalism |
| title_short |
Brazil : Issues in Fiscal Federalism |
| title_full |
Brazil : Issues in Fiscal Federalism |
| title_fullStr |
Brazil : Issues in Fiscal Federalism |
| title_full_unstemmed |
Brazil : Issues in Fiscal Federalism |
| title_sort |
brazil : issues in fiscal federalism |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/06/1807519/brazil-issues-fiscal-federalism http://hdl.handle.net/10986/15417 |
| _version_ |
1764426891640438784 |
| spelling |
okr-10986-154172021-04-23T14:03:14Z Brazil : Issues in Fiscal Federalism World Bank FISCAL FEDERALISM FISCAL DEFICITS FISCAL MANAGEMENT FINANCIAL MECHANISMS GLOBALIZATION BUDGET CONTROL SUBNATIONAL GOVERNMENT INVESTOR CONFIDENCE DEBT CRISIS DEBT MANAGEMENT FOREIGN INVESTMENTS POLITICAL BIAS REGULATORY FRAMEWORK MARKET ECONOMY INSTITUTIONAL MANAGEMENT BOND REGULATION BANKING SYSTEMS CREDIT EFFECTIVENESS PRIVATE CAPITAL FLOWS ACCESS TO CREDIT INTEREST RATE PARITY INFRASTRUCTURE FUNDING RATE OF RETURN REGULATION MACROECONOMIC STABILITY SUBSIDIES GOVERNMENT GUARANTEES PRIVATE BANKS FISCAL REFORMS PENSION SYSTEMS LIABILITIES (ECONOMIC) ASSETS AUTHORITY AUTONOMY BANKING SECTOR BLOCK GRANTS BOND MARKETS BORROWING BUDGET DEFICIT BUDGET LIABILITIES CAPITAL CITIES CAPITALIZATION CENTRAL GOVERNMENT CIVIL SERVICE COALITIONS COMMERCIAL BANKS CONSTITUENCY CONSTITUTION CONSTITUTIONS COUNCILS COURT SYSTEM DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECREE DEMOCRACY DISTRICTS ELECTED OFFICIALS EMPLOYMENT EXPENDITURE EXPENDITURE ASSIGNMENT EXPENDITURE RESPONSIBILITIES FEDERAL GOVERNMENT FEDERALISM FINANCIAL CONTROL FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL FISCAL CONTROLS FISCAL FEDERALISM FISCAL POLICY FISCAL RESPONSIBILITY FISCAL YEAR FOREIGN INVESTMENT FOREIGN TRADE GOVERNMENT BANKS GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS IMPEACHMENT INFLATION INSURANCE INTEREST RATES INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LACK OF ACCOUNTABILITY LAWS LEGISLATION LEGISLATURES LEVEL PLAYING FIELD LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL TAX LOCAL TAXES MACROECONOMIC STABILITY MANDATES MATURITY MEMBER STATES MONARCHY MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL SERVICES MUNICIPALITIES MUNICIPALITY NATIONAL LEVEL PARTY AFFILIATION PENSIONS POLITICAL CRISIS POLITICAL ELITES POLITICAL POWER POLITICIANS POPULISM PRESIDENCY PRESIDENTIAL CANDIDATES PRESIDENTIAL ELECTIONS PRESIDENTS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRIVATIZATION PROCEEDS PROVISIONS PUBLIC DEBT PUBLIC EMPLOYMENT PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PUBLIC UTILITIES PUBLIC WORKS RETIREMENT REVENUE ASSIGNMENT REVENUE SHARING REVENUE SOURCES SAVINGS SAVINGS SCHEMES SENATE SOCIAL ASSISTANCE SOCIAL SECURITY SOVEREIGNTY SPECIALIZED BANKS STATE ASSEMBLIES STATE BONDS STATE GOVERNORS STATE PARTICIPATION STATE REVENUE STRUCTURE OF GOVERNMENT SUBNATIONAL DEFICITS SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX ASSIGNMENT TAX BURDEN TAX REFORM TAX REVENUE TAX SHARING TAX SYSTEM TREASURY TURNOVER TAXES UNFUNDED MANDATES UTILITIES VOTING WAGES WATER SUPPLY The globalization of financial markets, has increased international pressure on the federal governments to maintain a hard budget constraint, with respect to sub-national governments. Because growth in sub-national deficits undermines investor confidence, the federal government is under pressure to enforce the new debt control system, if only to keep the foreign investment flowing, and, political support for enforcement of the fiscal rules may also have increased. Nevertheless, there is the case for shifting the system of sub-national debt control from one that depends on central regulation, to one that relies more on markets. The report looks at institutional models for doing so, which include bond markets, and specialized banks. If the market model is to prevail in Brazil, changes in the credit environment must occur: private long term funds must become available, at interest rates compatible with infrastructure investment returns. But continued macroeconomic stability, and declining federal deficits are required before implementing the market model; private lenders must have a level playing field, and, limitations on subsidized government lending is necessary to attract private sector interest; the federal government should refrain from extending implicit guarantees on private loans to sub-national governments, while establishing a pattern of non-interference in sub-national defaults to private banks; and, reforms should remove obstacles that prevent sub-national governments from becoming creditworthy. Likewise, the growing state pension liabilities challenges the present system of fiscal controls. 2013-08-28T14:07:14Z 2013-08-28T14:07:14Z 2002-06-04 http://documents.worldbank.org/curated/en/2002/06/1807519/brazil-issues-fiscal-federalism http://hdl.handle.net/10986/15417 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Pre-2003 Economic or Sector Report Economic & Sector Work Latin America & Caribbean Brazil |