Effects of the Fiscal Responsibility Law on the indebtedness of towns in Piauí, Brazil

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Fabricio Linhares
Christiano Penna
Glenda Borges

Abstract

The Fiscal Responsibility Law (LRF) seeks, in its core, to imprint austerity in the effectuation of public spending. Its purpose is balancing public spending by imprinting in its context a new fiscal perspective. This article applies a change to the methodology proposed by De Jesus Macedo and Corbari (2009) to evaluate the effects of LRF on municipal indebtedness, based on data from the towns of the state of Piauí. Given that the LRF was implemented in 2000, the aim of this article is checking whether there was a change in the municipal indebtedness since this law was implemented. The study suggests that the towns in Piauí reduced their debt by about 7% after the implementation of LRF.

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How to Cite
Linhares, F., Penna, C., & Borges, G. (2013). Effects of the Fiscal Responsibility Law on the indebtedness of towns in Piauí, Brazil. Brazilian Journal of Public Administration, 47(6), 1359–1374. Retrieved from https://periodicos.fgv.br/rap/article/view/13975
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