Party ideology and the fiscal crisis of Brazilian States: notes on Minas Gerais

Abstract

This papers aims at investigating the nexus between party ideology and public expenditures in the state of Minas Gerais (Brazil). Particularly, we assess if the current fi scal defi cit deterioration has to do with the take over of a left-wing party in the state since 2015. To this end, we compare revenue and expenses dynamics, focusing on the results of the last four years, when a left-wing political party (PT) replaced a more centre one (PSDB). The results show that the PT government tried to adjust the public accounts, albeit unsuccessfully.