Budget financialization and permanent austerity: Brazil under the logic of Constitutional Amendment 95

Abstract

This article examines the effects of Constitutional Amendment No. 95 (EC 95) on consolidating a regime of permanent fiscal austerity and the Public Budget Financialization in Brazil. It argues that EC 95 institutionalized a state model prioritizing fiscal stability over social equity, with negative impacts on sectors such as healthcare, education, and social security. Drawing on critical literature and secondary data, the study reveals a shift toward a liberal welfare regime and proposes alternatives such as progressive tax reform, renewed public investment, and an active industrial policy as necessary strategies to rebuild Brazil's social contract and promote inclusive development.

JEL Classification: E62; H50; I38; O23.