The objective of this article is to offer an analysis of the accommodation by Brazilian states with Fiscal Adjustment Program and with Fiscal Responsibility Act (FRA), showing their impacts on the choices of public resources allocation and on the investment rate. The results obtained after detailed work of data depuration confirm the improvement of financial situation of the states in the period post FRA, but also suggest the existence of a trade-off between fiscal indicators and infrastructure investment, demanding a reflection about the quality and the sustainability of the fiscal adjustment. The budget data analyzed also indicate evidences of creative accountability.
fiscal rules; fiscal adjustment; public investments; creative accountability
