Programa de reestruturação e ajuste fiscal (PAF) : o caso do Espírito Santo no período 1998-2011

Abstract

This paper presents the concept, the goals and the actual results of the Program for Restructuring and Fiscal Adjustment of Brazilian States (PAF), signed in 1998 after the enactment of Law 9.496/97 and expected to last until the year 2028, to the subnational units and, in particular, for the State of Espírito Santo. In the first part of this paper, it is reported brief history of fiscal policy in Brazil, highlighting the causes that explain the situation of indebtedness of subnational units to the institution of Law 9.496/97, which promoted the most recent renegotiation of state debts. In the second part, show up effectively the goals and the results obtained by the Brazilian states after PAF enters into force from 1998 to 2011, to evaluate how effective the PAF, from the point of view of promoting the economic-funding for states and especially to the Espírito Santo, more than thirteen years after its implementation. Finally, we try to point out important aspects that need improvement and/or modification to the program does not become obsolete and get results more efficient.