Comparison of the budget crisis between the state of Rio Grande do Sul and the balance sheet of Santa Catarina in the implementation of public policies

Abstract

This article explores the budgetary autonomy of Brazilian states, comparing the economic balances of Rio Grande do Sul and Santa Catarina. The budget crisis faced by Rio Grande do Sul and the measures adopted for recovery are analyzed, including pension reforms and innovative tax programs. In contrast, Santa Catarina demonstrated greater economic stability, with consecutive surpluses and efficient fiscal management. The methodology included document analysis and interviews with experts in public finance, covering official documents and audit reports from 2019 to 2022. It is concluded that Rio Grande do Sul's initiatives can serve as a model for other states in crisis, highlighting the importance of well-planned public policies to ensure fiscal sustainability and economic development. This study highlights challenges and solutions that can contribute to the effectiveness of public policies in similar contexts.