Abstract

The budget bill spells out the key functions of government. Once passed into
law, its implementation assures the provision of public services, the minimization of social
injustice, and the search for full employment with inflation under control. This article begins
by outlining the historical origins of national budgeting, stressing the evolution and systematization
of the process as nations develop. Brazil’s budget legislation is described starting
with the 1969 constitution. Moving on to the 1988 constitution (in force), the prolixity and
inconsistency of the chapter on public finance are criticized. The Brazilian budgetary process
is shown to be excessively fragmented, with three separated but overlapping pieces of legislation
– the Budget Guidelines Act (Lei de Diretriz Orçamentária), the Federal General Budget
and the Multiyear Plan. It is concluded that efficacy and transparency could be enhanced
by merging all three into a single act.

JEL Classification: H61.