Brazil: Technical Assistance Report-Supporting Implementation of the Expenditure Rule Through Public Financial Management Reforms

Author: International Monetary Fund. Fiscal Affairs Dept.

Technical Assistance Report-Supporting Implementation of the Expenditure Rule Through Public Financial Management Reforms

Volume/Issue: Volume 2017 Issue 292

Publication date: October 2017

ISBN: 9781484321218

$18.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics- Macroeconomics , Public Finance , ISCR , CR , expenditure rule , budget process , annual budget , expenditure ceiling , expenditure baseline , government policy , policy priority , expenditure aggregate , expenditure rule target , tax expenditures review , rule ceiling , expenditure policy , expenditure program , Budget planning and preparation , Macroeconomic and fiscal forecasts , Fiscal stance , Australia and New Zealand

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Summary

This Technical Assistance Report discusses the recommendations for supporting implementation of the expenditure rule through public financial management reforms in Brazil. To address rigidities in the budget and to create more fiscal space, authorities need to establish processes to build flexibility and improve efficiency. These include reviewing mandatory expenditures and indexation practices. Other options include a rolling program of spending reviews for large and fast-growing programs and efficiency dividends on ministries’ operational expenses. Authorities also need to begin to develop a medium-term budget framework to support strategic decision making.