Além da Estabilização: Desafios da Agenda Fiscal

With the external accounts problems reasonably solved, Brazil’s economic policy agenda is bound to be increasingly focused on fiscal issues. What makes the design of economic policy especially complex in this area is the fact that there are several superimposed and potentially conflicting fiscal agendas. The main challenge of the country’s economic policy over the coming years will be to successfully conciliate the multiple fiscal agendas that will have to be faced, in order to remodel and to resize the extraction and allocation of fiscal resources that already amount to 40 percent of GDP. The scope for economic growth and construction of a more equitable society will largely depend upon the degree of success the country’s political system will be able to show in its response to this challenge.