PLANEJAMENTO FISCAL

Abstract

This article presents a brief overview of the Brazilian fiscal rules framework and its evolution, pointing to the absences of an explicit long term fiscal policy objective and of medium term fiscal targets. It presents the concept and the stages of implementation of a Medium-Term Expenditure Framework (MTEF), an instrument adopted under different models by most developed countries, that allows the government to extend fiscal policy horizon beyond the annual budget schedule. Describes how Sweden, a world benchmark in public finance management, has a disciplined process for formulating the central government’s budget and uses a MTEF to carry out its medium-term fiscal planning, setting mandatory spending ceilings with three years in advance and indicative limits for 27 thematic areas. Next, suggests the improvement of our incipient Medium-Term Fiscal Framework (MTFF), with the extension of its time horizon and the presentation in the fiscal table of the primary revenues and expenditures main aggregates, as well as the definition of spending ceiling with three years in advance. In the following section, proposes how to align the Brazilian budget process with the best international fiscal planning practices, with and the adoption of a MTEF, in order to incorporate a medium-term perspective in the allocation of public resources. By way of conclusion, argues that the benefits of having a MTEF conducting the public accounts would be felt by both the government's technical area and Congressional parliamentarians.