FISCAL POLICY AND PUBLIC DEBT IN BRAZIL: AN ANALYSIS FOR THE PERIOD OF 1994-2008

Abstract

The paper presents astudy of fiscal policy and public debt in Brazil from 1994 to 2008. We assert that fiscal policy in Brazil was conductedin accordance with a new macroeconomic model, and that the measures adopted inthat framework resulted in the construction of a new fiscal model. The fiscalpolicy in this new system has the main role of debt sustainability, with asuitable revenue and spending policy, conducted to achieve the goals of apositive public sector primary result.