THE FISCAL DETERIORATION OF MARANHÃO STATE BETWEEN 1991 AND 1997

Abstract

The purpose of this article is to analyze the fiscal situation of the State of Maranhão between 1991 and re-structuring the financial debt of Brazilian States occurred in 1997. Initially is analyzed the evolution of non-interest revenue. Then, is discussed expenditure growth. On that occasion, although the state revenue increased, its public accounts showed a deterioration expressed by the decline in primary surplus. The increase in personnel expenditure (active + inactive) and “other expenditure” constituted the main variables for the worsening fiscal. Moreover, as complicating this situation, there was a decline in public investiment with its negative effects on the economic and social infrastructure of State of Maranhão.