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Fiscal Space and Public Sector Investments in Infrastructure: A Brazilian Case-Study

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Author Info
José Roberto Rodrigues Afonso
Erika Amorim Araújo
Geraldo Biasoto Júnior
Abstract

The Brazilian experience is of particular interest as a case study into the fiscal scopefor public sector investments, especially in infrastructure. Brazil has one of thehighest tax burdens in the world and, at the same time, the public sector has beenregistering a historic low in investment, even lower than the average levels seenelsewhere in Latin America. The idea of crating adequate fiscal space to allow forincreased investment has been largely ignored at national level. The little thatnational debate has advanced so far on this issue has only produced at best adefinition of the challenge. In this context, the paper does not intend to provide aready-made solution for such large and varied challenges. Instead, it hopes tocontribute in a small way to the development of debate, starting by raising andsystemizing information and by pointing out possible alternatives, in a preliminaryand perhaps somewhat provocative manner.

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Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1141.

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Length: 47 pages
Date of creation: Dec 2005
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Handle: RePEc:ipe:ipetds:1141

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