Desequilíbrios fiscais na Região Nordeste

Abstract

This paper shows the fiscal situation of the public sector in the Northeastern Region of Brazil. When it comes to fiscal imbalance of the states, the first idea that comes to mind, for most citizens, legislators and policymakers is the relation between the revenue and the expenditure of the states. This text attempts to show that even when revenues (taxes) exceed expenditures,there may be fiscal imbalance. The main idea is that this imbalance may not be obvious. It happens because even though the states may have fiscal discipline (balanced budget), the states do not have adequate resources to fulfill their primary roles, such as allocative and redistributive functions. So we try to answer if there is a deficiency in public finance of the northeastern states that undermine the opportunities for the development of the Northeastern Region of Brazil and if it is a necessary the allocation of federal resources in the Northeast in order to implement development policies and the economic integration.