Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1366
This paper attempts to examine the evolution of the financial conditions of Brazilian States ten years after the re-structuring of their financial debt. Re-structuring the financial debt was implemented according to a fiscal adjustment program which established targets to be periodically re-assessed. It is considered as a major effort to improve the financial management of the Brazilian public sector. Major attempt is to assess the extent to which the financial debt renegotiation contributed to the consolidation of clearer and more transparent federalist relations among the Central and the States Governments in Brazil. Such analysis is initially conducted through the parameters of the fiscal adjustment program. Then, tendencies and new challenges for the States financial management in the forthcoming future will be examined.