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 …