PUBLIC INDEBTEDNESS: A STUDY OF THE NORTHEASTERN STATES’ INDICATORS

Abstract

The public accounting is designed to collect and record the acts and facts of public administration, as well as to verify the legality of budget execution acts. The Fiscal Responsibility Act along with the Senate Resolution No. 40 and 43/2001 have highlighted the limits and restrictions, especially regarding public debt. In this context, the following question-problem arises: what is the behavior of public debt of the northeastern states from 2000 to 2007? This is a documentary study, both exploratory and descriptive, with a quantitative approach. Data were collected from the National Treasury´s website and were analyzed using descriptive statistical tools. In the analysis of short-term indebtedness indicators of the northeastern states it was found that there was a significant debt decline over the years, demonstrating the influence of the Fiscal Responsibility Law and the Senate Resolution No.40 and 43/2001, which came to reinforce the limits and restrictions of public activity, especially regarding public debt. It was concluded that the Northeastern states have sought to balance its budget execution in order to compromise as little as possible their current revenue with short-term debt. Regarding long-term debt indicator, it was observed that in most northeastern states, except Bahia and Pernambuco, there was a debt reduction , showing that they are risking less and less their current income with long-term debt.