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

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  • 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.

Suggested Citation

  • José Roberto Rodrigues Afonso & Erika Amorim Araújo & Geraldo Biasoto Júnior, 2005. "Fiscal Space and Public Sector Investments in Infrastructure: A Brazilian Case-Study," Discussion Papers 1141, Instituto de Pesquisa Econômica Aplicada - IPEA.
  • Handle: RePEc:ipe:ipetds:1141
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    References listed on IDEAS

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    1. Luiz Cezar Loureiro de Azeredo, 2004. "Investimento em Infra-Estrutura no Plano Plurianual (PPA) 2004-2007 - Uma Visão Geral," Discussion Papers 1024, Instituto de Pesquisa Econômica Aplicada - IPEA.
    2. Buti, Marco, 2003. "Revisiting the stability and growth pact: grand design or internal adjustment?," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34908, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    4. Marco Buti & Gabriele Giudice, 2002. "Maastricht’s Fiscal Rules at Ten: An Assessment," Journal of Common Market Studies, Wiley Blackwell, vol. 40(5), pages 823-848, December.
    5. Márcio Gomes Pinto Garcia & Roberto Rigobon, 2004. "A Risk Management Approach to Emerging Market’s Sovereign Debt Sustainability with an Application to Brazilian Data," Textos para discussão 484, Department of Economics PUC-Rio (Brazil).
    6. Buiter, Willem H, 2001. "Notes on 'A Code for Fiscal Stability.'," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 1-19, January.
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