Public debt and financial calamity: the fiscal irresponsability and the drama of federalism in Brasil.

In Brasil the publication of the Fiscal Responsability Law in the year 2000 tried to led the brasilian public finance to new directions, as evidenced by the introduction of the responsible financial management regime whose aim was to promote an adjustment in the public finance of the federated entities.
Nevertheless, the fiscal crisis – that has struck the Country since 2010 – led to the use of techniques of “creative accounting”: these techniques have distorted the public finance and the existing rules concerning the budgetary managment. The result has been the financial collapse of various States in the Federation, thus causing problems of financial insolvency. Various federated States have suspended payments and have declared the “state of financial calamity”, so trying to obtain financial aid from the central government. This presentation analyses these problems and the current financial situation in Brasil.