Brazil: Fiscal Transparency Evaluation
International Monetary Fund. Fiscal Affairs Dept.
mag 2017 · International Monetary Fund
Ebook
92
pagine
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Despite the development of fiscal responsibility legislation, several weaknesses in fiscal transparency have had adverse effects on the quality of fiscal policy—many of which are being addressed. Brazil has made significant progress over recent decades in providing regular information on the budget and its implementation at all levels of government, partly driven by the 2000 Fiscal Responsibility Law (FRL). These include advances in implementing international standards to improve the quality of data. At the same time, fiscal transparency has been undermined by weaknesses in the fiscal framework and by practices that are inconsistent with the principles of the FRL (including unreported liabilities, the “pedaladas”). These include: incomplete information on policies and their costs or risks; accounting changes, and lack of clarity on fiscal reporting standards, that undermine the effectiveness of the fiscal rules (at all levels of government); lack of transparency in the relationship between the central government and public banks and between the central government and subnational governments; and corruption involving some of the largest public enterprises. Since 2015, important efforts have been underway to address some of these weaknesses.
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