A endogeneidade da crise fiscal do estado

Abstract

In the wake of the sharp and sudden petroleum price increase in 1973, Brazil opted to pursue a high rate of economic growth as a main strategy, managing the consequent strain on the balance of payments through a combination of renewad import substitution, export subsidies, and foreign borrowing However in order to reach this objective in the minimum period, there was an increase in the participation of the government activity to influence aggregate demand, besides its monetary and fiscal activities. The intervention of the government in the process of economic adjustment has been active for several years and continuously increases its role. Therefore, there was a big increase in a function of the public, acting through a large variety of subsidized credit programs, tax incentives, tariff preferences, etc., as well as its own direct investments, progressively substituted for the market as the principal allocator of investment in the economy. The consequence of this activity weakened the overall budgetary control of the central economic authorities and did not yield the desired results after 1980.