World Fiscal

May 11, 2020


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In a pioneering research, the University of Stanford created an index, the SFRI (Index of Sovereign Fiscal Responsibility, acronym of the English) that it allows to compare the solidity of the fiscal responsibility between the countries, in the long run. This work compares the fiscal responsibility enters the 34 bigger economies of the world, including the countries of the OCDE and the BRIC, with a methodology that encloses questions as public debt, deficit and fiscal governana, of form to make possible the one creation ranking between these countries, showing which are most solid and which are in bigger fiscal difficulties. Brazil, surprising, appears in a sufficiently favorable position, in 10 of ranking, the front of countries as Canada (11), Holland (14), Mexico (18), Finlndia (22), France (23), Spain (24), Germany (25), United States (28) and Japan (31). This study it is well interesting to breach with that old idea of that governments in Brazil if would characterize for spending excessively and irresponsibly. In the truth, what we have attended recently are diverse cuts in the public expense in Brazil, however, it has that to observe itself that such cuts search, in the reality, the control on the inflation and the overheating of the demand, and not it fiscal balance, as if it could assume to if making a less critical reading of the good results of Brazil in the Index of Sovereign Fiscal Responsibility of the University of Stanford. Still thus, the results are positive for Brazil. The index is composed in the combination of three fiscal pointers: the space for indebtedness related to the GIP; the fiscal trajectory (in years) until the country reaches a maximum level of indebtedness before a fiscal crisis; the governana, that includes laws, transparency and applicability of the rules. In accordance with the study, in the first question Brazil would have capacity of if becoming indebted up to 102% of the GIP, being that its debt arrives only in 56%.

In as the question Brazil also if it detaches, becoming equal itself with the first ones of the list as Australia, Sweden and China, with the forecast of a sustainable fiscal trajectory of 39 years. In the question governana Brazil is only medium, having taken off a note 56 (of 100 possible ones). It is interesting to notice the undeniable advances that our country covered in recent years as for the fiscal responsibility. It has very little time behind we were a country bogged in debts, discredited and with total chaotic the public accounts. The Law of Fiscal Responsibility is very recent, its mechanisms of responsabilizao still lacks of bigger spreading and perfectioning, however, already we can visualize great advances, mainly when comparing the mechanisms of control of Brazil with the practical inspectors of the remaining portion of the world, what it was sufficiently clearly with the publication of the SFRI. Despite the Brazilian government is making its lesson of house, cutting expenses and making the necessary fiscal adjustments, it is still a great one concern, that is with the quality of these expenses. The fiscal regulation has for objective to search the efficiency of the public expense, and not it abandonment of the population the public services of low quality, as comumente we see to happen. We must search the control of the expenses in harmony with a worthy attendance of the citizen for the public agencies, searching and demanding efficiency and effectiveness in the public expenses. Link for the cited research: The Fiscal Sovereign Responsibility Index. Stanford Institute will be Economic Policy Researc – Stanford University, april 2011.