Fiscal policy of Real Plan and the fiscal adjustment for 1999/2001

ABSTRACT The main purpose of this article is to analyze the results of fiscal policy management in Brazil during the period between 1994 and 1999. The central idea of the text is that there was no significant change in the fiscal management during the period, even considering the fiscal adjustment program under the IMF arrangement. The policy’s emphasis has been the short run approach, based on the raising of the fiscal revenues as a way to avoid primary deficits deterioration. In contrast, the structural reforms necessary to support the fiscal adjustment have been continuously postponed.