FISCAL POLICY IN PERSPECTIVE: THE 16-YEAR CYCLE (1999-2014)

ABSTRACT This paper contributes to the debate over fiscal regime changes in Brazil, better characterizing the cycle of contraction and expansion of fiscal policy between 1999 and 2014.Firstly, the paper presents an analysis based on detailed statistics about primary budget balance that incorporate regional level of government in order to provide a better understanding of the recent expansionary fiscal policy in Brazil (2010-2014). It identifies not only the main determinants in terms of revenues and expenditures but also those related to local and state governments. Additionally, several indicators were used to better characterize that fiscal expansion compared to previous periods and, finally, the paper analyzes the sustainability of public spending trajectory under different scenarios.