The Reform of the Fiscal Institutions in Latin America

Abstract

Fiscal deficits on average only 1.4% of GDP; debt coefficients on the decline; early debt repayments to the International Monetary Fund and massive repurchases of Brady bonds that 15 years ago were the last salvation for overly endebted governments. This doesn't look like Latin America, the region with the strongest tradition of macroeconomic instability in the world and the longest history of noncompliance with its public debt commitments. However, these are some of the fiscal events that have been occurring since the beginning of 2006, a particularly favorable time for the region.

Note: Downloadable document is in Spanish.

Keywords: Fiscal institutions, budget institutions, decentralization, tax policy, Latin America