RIO DE JANEIRO, BRAZIL - Fiscal policy in Brazil "has been neutral or contractionary in recent years," according to a study released by the Independent Fiscal Institution (IFI) yesterday. Conducted by director Vilma Pinto and analyst Alexandre Andrade, the study is based on the concept of structural fiscal result, which eliminates from the conventional primary result the impacts of the economic cycle and non-recurring events.
According to IFI's calculations, a fiscal policy monitoring body linked to the Senate, the structural result showed a 1.2% deficit of GDP in 2020.
"That is, by excluding the effect of the economic . . .