In federal countries that have reinstated the popular vote for state governors and in which fiscal adjustment is a priority, the states have become important players in fiscal control. The article analyzes the impact of policies of hard budget constraints on the electoral results for state governors and challenges the hypothesis that state politics in Brazil are moved by clientelism, by policies not affecting the status quo (traditional politics) and by the use of public resources to sustain them. I argue that state politics in Brazil is driven by several rationales. Different rationales give room for state politicians to adopt fiscal policies and still be reelected or elect their candidates for governorship. Three states have been selected to test these hypotheses: Bahia, Ceará, and Paraná.
State politics; Fiscal adjustment; Electoral coalitions
