Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework
Brazil's subnational fiscal framework has remained a source of unabated controversy despite its relative stability over the past decade. The objective of this study is to evaluate the nature and impact of recent and expected changes to Brazil&...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
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Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18423427/impact-implications-recent-potential-changes-brazils-subnational-fiscal-framework http://hdl.handle.net/10986/20773 |
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okr-10986-20773 |
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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 |
ACCOUNTING ADMINISTRATIVE COSTS ALLOCATION OF RESOURCES AMOUNT OF CREDITS AMOUNT OF DEBT ARREARS BANK POLICY BANKING SECTOR BASIC EDUCATION BENEFICIARIES BENEFICIARY BLUE CHIP BLUE CHIPS BONDS BORROWING BORROWING RULES BUDGET CONSTRAINTS CAPACITY BUILDING CASH OUTFLOW CENTRAL GOVERNMENT COEFFICIENTS COLLECTION PROCESS COMMODITY PRICES COMPENSATION FUND COMPLIANCE COST CONSUMER PRICE INDEX CREDITORS CUSTODY DEBT CONTRACTS DEBT CRISIS DEBT FINANCE DEBT INTEREST DEBT ISSUANCE DEBT OUTSTANDING DEBT RESTRUCTURING DEBT SERVICE DEBT STOCK DEBTORS DEBTS DECENTRALIZATION DECENTRALIZATION PROCESS DEVELOPMENT BANK DEVOLUTION DIFFERENTIALS DISTRICT DOMESTIC BANKS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EQUALITY EQUALIZATION EXCHANGE RATE EXPENDITURE EXPENDITURE NEEDS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGETARY RESOURCES FEDERAL CONSTITUTION FEDERAL DEBT FEDERAL DISTRICT FEDERAL LAW FEDERAL REVENUES FEDERAL SENATE FEDERAL TAX FEDERAL TAXES FEDERAL TRANSFERS FEDERAL TRANSFERS TO STATES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTION FISCAL ADJUSTMENT FISCAL AUTONOMY FISCAL BALANCE FISCAL CAPACITY FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL IMPACT FISCAL PLANS FISCAL POLICY FISCAL REFORMS FISCAL RESPONSIBILITY FISCAL SPACE FISCAL SUSTAINABILITY GOVERNMENT ACCOUNTS GOVERNMENT REVENUE GROSS DOMESTIC PRODUCT GROSS REVENUES GROSS SALES HARD BUDGET CONSTRAINTS HOLDING HOUSEHOLD INCOME HUMAN DEVELOPMENT INCOME TAX INDEBTEDNESS INEQUALITIES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST RATE INTEREST RATE ADJUSTMENT INTEREST RATES INTEREST SUBSIDY INTERGOVERNMENTAL FINANCE INTERGOVERNMENTAL FISCAL TRANSFERS INTERGOVERNMENTAL TRANSFER INTERGOVERNMENTAL TRANSFERS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT RATE ISSUANCE ISSUANCE OF BONDS LACK OF TRANSPARENCY LAWS LEGISLATION LEGISLATIVE FRAMEWORK LEVEL OF GOVERNMENT LICENSES LONG-TERM INTEREST LONG-TERM INTEREST RATE LOW INTEREST RATES MACROECONOMIC STABILIZATION MATURITY MEDIUM ENTERPRISE MEDIUM ENTERPRISES MEDIUM-TERM FISCAL MINISTRY OF FINANCE MORAL HAZARD MULTILATERAL LENDERS MUNICIPALITIES MUNICIPALITY NATIONAL TREASURY NET CURRENT REVENUES NET DEBT NET REVENUES NEW ENTRANTS OIL PRICE OUTSTANDING AMOUNT OUTSTANDING LOANS PENSIONS POLITICAL ACCOUNTABILITY PRIVATE BORROWERS PRIVATE SECTOR PRODUCTIVITY PROPERTY TAX PROVISIONS PUBLIC PUBLIC BANKS PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC SPENDING RATES OF RETURN REAL INTEREST REAL INTEREST RATES REDISTRIBUTION REFORM PROGRAMS RENEGOTIATION RENEGOTIATIONS RETURN RETURNS REVENUE COLLECTION REVENUE COLLECTIONS REVENUE EQUALIZATION REVENUE INCREASE REVENUE LOSS REVENUE SHARING REVENUE SHARING SCHEME REVENUE SOURCE REVENUE SOURCES SETTLEMENT SOCIAL SECURITY SOLVENCY SOURCES OF FUNDS STATE GOVERNMENTS STATE OWNED BANKS SUBNATIONAL SUBNATIONAL DEBT SUBNATIONAL FINANCE SUBNATIONAL FINANCES SUBNATIONAL FISCAL ISSUES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS SUBNATIONAL LENDING SUBSIDIARY TAX TAX ADMINISTRATION TAX BASE TAX BURDEN TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COSTS TAX CREDIT TAX CREDITS TAX EXEMPTION TAX INCENTIVE TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX RATE TAX RATES TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUE SHARING TAX REVENUES TAX SYSTEM TAX TREATMENT TAXATION TOTAL DEBT TRANSACTION TRANSPORT TRANSPORTATION SERVICES VALUATION WAREHOUSE WAREHOUSES |
| spellingShingle |
ACCOUNTING ADMINISTRATIVE COSTS ALLOCATION OF RESOURCES AMOUNT OF CREDITS AMOUNT OF DEBT ARREARS BANK POLICY BANKING SECTOR BASIC EDUCATION BENEFICIARIES BENEFICIARY BLUE CHIP BLUE CHIPS BONDS BORROWING BORROWING RULES BUDGET CONSTRAINTS CAPACITY BUILDING CASH OUTFLOW CENTRAL GOVERNMENT COEFFICIENTS COLLECTION PROCESS COMMODITY PRICES COMPENSATION FUND COMPLIANCE COST CONSUMER PRICE INDEX CREDITORS CUSTODY DEBT CONTRACTS DEBT CRISIS DEBT FINANCE DEBT INTEREST DEBT ISSUANCE DEBT OUTSTANDING DEBT RESTRUCTURING DEBT SERVICE DEBT STOCK DEBTORS DEBTS DECENTRALIZATION DECENTRALIZATION PROCESS DEVELOPMENT BANK DEVOLUTION DIFFERENTIALS DISTRICT DOMESTIC BANKS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EQUALITY EQUALIZATION EXCHANGE RATE EXPENDITURE EXPENDITURE NEEDS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGETARY RESOURCES FEDERAL CONSTITUTION FEDERAL DEBT FEDERAL DISTRICT FEDERAL LAW FEDERAL REVENUES FEDERAL SENATE FEDERAL TAX FEDERAL TAXES FEDERAL TRANSFERS FEDERAL TRANSFERS TO STATES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTION FISCAL ADJUSTMENT FISCAL AUTONOMY FISCAL BALANCE FISCAL CAPACITY FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL IMPACT FISCAL PLANS FISCAL POLICY FISCAL REFORMS FISCAL RESPONSIBILITY FISCAL SPACE FISCAL SUSTAINABILITY GOVERNMENT ACCOUNTS GOVERNMENT REVENUE GROSS DOMESTIC PRODUCT GROSS REVENUES GROSS SALES HARD BUDGET CONSTRAINTS HOLDING HOUSEHOLD INCOME HUMAN DEVELOPMENT INCOME TAX INDEBTEDNESS INEQUALITIES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST RATE INTEREST RATE ADJUSTMENT INTEREST RATES INTEREST SUBSIDY INTERGOVERNMENTAL FINANCE INTERGOVERNMENTAL FISCAL TRANSFERS INTERGOVERNMENTAL TRANSFER INTERGOVERNMENTAL TRANSFERS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT RATE ISSUANCE ISSUANCE OF BONDS LACK OF TRANSPARENCY LAWS LEGISLATION LEGISLATIVE FRAMEWORK LEVEL OF GOVERNMENT LICENSES LONG-TERM INTEREST LONG-TERM INTEREST RATE LOW INTEREST RATES MACROECONOMIC STABILIZATION MATURITY MEDIUM ENTERPRISE MEDIUM ENTERPRISES MEDIUM-TERM FISCAL MINISTRY OF FINANCE MORAL HAZARD MULTILATERAL LENDERS MUNICIPALITIES MUNICIPALITY NATIONAL TREASURY NET CURRENT REVENUES NET DEBT NET REVENUES NEW ENTRANTS OIL PRICE OUTSTANDING AMOUNT OUTSTANDING LOANS PENSIONS POLITICAL ACCOUNTABILITY PRIVATE BORROWERS PRIVATE SECTOR PRODUCTIVITY PROPERTY TAX PROVISIONS PUBLIC PUBLIC BANKS PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC SPENDING RATES OF RETURN REAL INTEREST REAL INTEREST RATES REDISTRIBUTION REFORM PROGRAMS RENEGOTIATION RENEGOTIATIONS RETURN RETURNS REVENUE COLLECTION REVENUE COLLECTIONS REVENUE EQUALIZATION REVENUE INCREASE REVENUE LOSS REVENUE SHARING REVENUE SHARING SCHEME REVENUE SOURCE REVENUE SOURCES SETTLEMENT SOCIAL SECURITY SOLVENCY SOURCES OF FUNDS STATE GOVERNMENTS STATE OWNED BANKS SUBNATIONAL SUBNATIONAL DEBT SUBNATIONAL FINANCE SUBNATIONAL FINANCES SUBNATIONAL FISCAL ISSUES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS SUBNATIONAL LENDING SUBSIDIARY TAX TAX ADMINISTRATION TAX BASE TAX BURDEN TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COSTS TAX CREDIT TAX CREDITS TAX EXEMPTION TAX INCENTIVE TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX RATE TAX RATES TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUE SHARING TAX REVENUES TAX SYSTEM TAX TREATMENT TAXATION TOTAL DEBT TRANSACTION TRANSPORT TRANSPORTATION SERVICES VALUATION WAREHOUSE WAREHOUSES World Bank Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| geographic_facet |
Latin America & Caribbean Brazil |
| description |
Brazil's subnational fiscal
framework has remained a source of unabated controversy
despite its relative stability over the past decade. The
objective of this study is to evaluate the nature and impact
of recent and expected changes to Brazil's subnational
fiscal framework in light of these debates. More
specifically, this work has focused on recent and proposed
changes to: 1) the Tax on Goods Circulation, Communication
and Inter-municipal and Inter-state Transportation Services
(ICMS); 2) the State Participation Fund (FPE) as well as the
transfers from oil and mining royalties; and 3) the
subnational debt and borrowing framework. These three broad
areas are precisely the ones that are the center of the
current debate on Brazil's subnational fiscal
framework. In order to achieve the proposed objective, three
background papers were commissioned, each covering one of
the issues outlined above. The main value-added of this
study is an examination-and an attempt at a quantification
of the impacts of the changes underway in these three
dimensions of Brazil's intergovernmental fiscal
framework. The remainder of this synthesis report is
organized as follows. Section two provides a brief overview
of how Brazil's subnational fiscal framework currently
works. Section three describes the ongoing efforts to reform
Brazil's subnational fiscal framework and points to the
advantages of a more coordinated approach over a piecemeal
one. Section four discusses the expected fiscal impact on
subnational governments of the most likely reform scenarios.
Section five concludes. Finally, the amended proposal also
kept the original provisions regarding the validation of
past tax incentives unchanged. It included a mandate for
past tax incentives to be approved by state legislative and
to be disclosed at the official Gazette. The main change was
the creation of a provision to safeguard the existing tax
incentives until their expiration or 2033, whichever comes first. |
| format |
Economic & Sector Work :: Public Expenditure Review |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| title_short |
Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| title_full |
Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| title_fullStr |
Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| title_full_unstemmed |
Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework |
| title_sort |
impact and implications of recent and potential changes to brazil's subnational fiscal framework |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/09/18423427/impact-implications-recent-potential-changes-brazils-subnational-fiscal-framework http://hdl.handle.net/10986/20773 |
| _version_ |
1764445970596102144 |
| spelling |
okr-10986-207732021-04-23T14:03:56Z Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework World Bank ACCOUNTING ADMINISTRATIVE COSTS ALLOCATION OF RESOURCES AMOUNT OF CREDITS AMOUNT OF DEBT ARREARS BANK POLICY BANKING SECTOR BASIC EDUCATION BENEFICIARIES BENEFICIARY BLUE CHIP BLUE CHIPS BONDS BORROWING BORROWING RULES BUDGET CONSTRAINTS CAPACITY BUILDING CASH OUTFLOW CENTRAL GOVERNMENT COEFFICIENTS COLLECTION PROCESS COMMODITY PRICES COMPENSATION FUND COMPLIANCE COST CONSUMER PRICE INDEX CREDITORS CUSTODY DEBT CONTRACTS DEBT CRISIS DEBT FINANCE DEBT INTEREST DEBT ISSUANCE DEBT OUTSTANDING DEBT RESTRUCTURING DEBT SERVICE DEBT STOCK DEBTORS DEBTS DECENTRALIZATION DECENTRALIZATION PROCESS DEVELOPMENT BANK DEVOLUTION DIFFERENTIALS DISTRICT DOMESTIC BANKS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EQUALITY EQUALIZATION EXCHANGE RATE EXPENDITURE EXPENDITURE NEEDS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGETARY RESOURCES FEDERAL CONSTITUTION FEDERAL DEBT FEDERAL DISTRICT FEDERAL LAW FEDERAL REVENUES FEDERAL SENATE FEDERAL TAX FEDERAL TAXES FEDERAL TRANSFERS FEDERAL TRANSFERS TO STATES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTION FISCAL ADJUSTMENT FISCAL AUTONOMY FISCAL BALANCE FISCAL CAPACITY FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL IMPACT FISCAL PLANS FISCAL POLICY FISCAL REFORMS FISCAL RESPONSIBILITY FISCAL SPACE FISCAL SUSTAINABILITY GOVERNMENT ACCOUNTS GOVERNMENT REVENUE GROSS DOMESTIC PRODUCT GROSS REVENUES GROSS SALES HARD BUDGET CONSTRAINTS HOLDING HOUSEHOLD INCOME HUMAN DEVELOPMENT INCOME TAX INDEBTEDNESS INEQUALITIES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST RATE INTEREST RATE ADJUSTMENT INTEREST RATES INTEREST SUBSIDY INTERGOVERNMENTAL FINANCE INTERGOVERNMENTAL FISCAL TRANSFERS INTERGOVERNMENTAL TRANSFER INTERGOVERNMENTAL TRANSFERS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT RATE ISSUANCE ISSUANCE OF BONDS LACK OF TRANSPARENCY LAWS LEGISLATION LEGISLATIVE FRAMEWORK LEVEL OF GOVERNMENT LICENSES LONG-TERM INTEREST LONG-TERM INTEREST RATE LOW INTEREST RATES MACROECONOMIC STABILIZATION MATURITY MEDIUM ENTERPRISE MEDIUM ENTERPRISES MEDIUM-TERM FISCAL MINISTRY OF FINANCE MORAL HAZARD MULTILATERAL LENDERS MUNICIPALITIES MUNICIPALITY NATIONAL TREASURY NET CURRENT REVENUES NET DEBT NET REVENUES NEW ENTRANTS OIL PRICE OUTSTANDING AMOUNT OUTSTANDING LOANS PENSIONS POLITICAL ACCOUNTABILITY PRIVATE BORROWERS PRIVATE SECTOR PRODUCTIVITY PROPERTY TAX PROVISIONS PUBLIC PUBLIC BANKS PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC SPENDING RATES OF RETURN REAL INTEREST REAL INTEREST RATES REDISTRIBUTION REFORM PROGRAMS RENEGOTIATION RENEGOTIATIONS RETURN RETURNS REVENUE COLLECTION REVENUE COLLECTIONS REVENUE EQUALIZATION REVENUE INCREASE REVENUE LOSS REVENUE SHARING REVENUE SHARING SCHEME REVENUE SOURCE REVENUE SOURCES SETTLEMENT SOCIAL SECURITY SOLVENCY SOURCES OF FUNDS STATE GOVERNMENTS STATE OWNED BANKS SUBNATIONAL SUBNATIONAL DEBT SUBNATIONAL FINANCE SUBNATIONAL FINANCES SUBNATIONAL FISCAL ISSUES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS SUBNATIONAL LENDING SUBSIDIARY TAX TAX ADMINISTRATION TAX BASE TAX BURDEN TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COSTS TAX CREDIT TAX CREDITS TAX EXEMPTION TAX INCENTIVE TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX RATE TAX RATES TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUE SHARING TAX REVENUES TAX SYSTEM TAX TREATMENT TAXATION TOTAL DEBT TRANSACTION TRANSPORT TRANSPORTATION SERVICES VALUATION WAREHOUSE WAREHOUSES Brazil's subnational fiscal framework has remained a source of unabated controversy despite its relative stability over the past decade. The objective of this study is to evaluate the nature and impact of recent and expected changes to Brazil's subnational fiscal framework in light of these debates. More specifically, this work has focused on recent and proposed changes to: 1) the Tax on Goods Circulation, Communication and Inter-municipal and Inter-state Transportation Services (ICMS); 2) the State Participation Fund (FPE) as well as the transfers from oil and mining royalties; and 3) the subnational debt and borrowing framework. These three broad areas are precisely the ones that are the center of the current debate on Brazil's subnational fiscal framework. In order to achieve the proposed objective, three background papers were commissioned, each covering one of the issues outlined above. The main value-added of this study is an examination-and an attempt at a quantification of the impacts of the changes underway in these three dimensions of Brazil's intergovernmental fiscal framework. The remainder of this synthesis report is organized as follows. Section two provides a brief overview of how Brazil's subnational fiscal framework currently works. Section three describes the ongoing efforts to reform Brazil's subnational fiscal framework and points to the advantages of a more coordinated approach over a piecemeal one. Section four discusses the expected fiscal impact on subnational governments of the most likely reform scenarios. Section five concludes. Finally, the amended proposal also kept the original provisions regarding the validation of past tax incentives unchanged. It included a mandate for past tax incentives to be approved by state legislative and to be disclosed at the official Gazette. The main change was the creation of a provision to safeguard the existing tax incentives until their expiration or 2033, whichever comes first. 2014-12-17T21:48:58Z 2014-12-17T21:48:58Z 2013-09-27 http://documents.worldbank.org/curated/en/2013/09/18423427/impact-implications-recent-potential-changes-brazils-subnational-fiscal-framework http://hdl.handle.net/10986/20773 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Public Expenditure Review Latin America & Caribbean Brazil |