Imprevidência e sujeição política: endividamento e crise do setor público gaúcho nos anos 80

The public debt of The State of Rio Grande do Sul is examined as an outcome of a twofold process performed by the State itself and its enterprises. On the one hand, the Central Administration debt results of two movements. First, the reduction of tax income as a result of economic support for private enterprises and second, the growing of public expenditure due to imprudent political decisions. On the other hand, the state corporations of telephone, energy and sewerage made a debt that grew from overestimated investments and from devaluation of their services' prices. From the middle eighties public indebtedness became extremely hard to deal with.The public debt of The State of Rio Grande do Sul is examined as an outcome of a twofold process performed by the State itself and its enterprises. On the one hand, the Central Administration debt results of two movements. First, the reduction of tax income as a result of economic support for private enterprises and second, the growing of public expenditure due to imprudent political decisions. On the other hand, the state corporations of telephone, energy and sewerage made a debt that grew from overestimated investments and from devaluation of their services' prices. From the middle eighties public indebtedness became extremely hard to deal with