debt above 60 percent or deficits above 3 percent of GDP. We find that the proposed framework would require ambitious … fiscal adjustment: on average, more than 2 percent of GDP over the medium term, in addition to the adjustment that is already … framework. We also find that for most countries with debt above 60 percent of GDP, these adjustment requirements are driven by …

subnational (state) levels. It is the steady increase of personnel expenditures in real terms that underlies the fiscal … limiting subnationals personnel expenditures to 50 percent of net revenues, triggering adjustment measures when reaching 47 … expenditure ceiling introduced in 2016, which has successfully curbed expenditures, including those of the judiciary and …

support. During the world financial crisis the expenditure ceilings were relaxed, however, and current primary expenditures … at the federal and provincial levels, and at the same time securing a high level of capital expenditure as a share of GDP …

. Nevertheless, public debt has increased continuously and is now expected to exceed 60 percent of GDP, in large part driven by the … buffer risk methodology, we show that the prudent debt level should not exceed 48 percent of GDP and that in order to achieve … this in the medium term, a policy mix increasing revenues to 17.8 percent of GDP (from 15.5 percent during 2016-2019) and …