Brazil fact of the day, federalism edition

In today’s Brazil, federalism and decentralisation have become a question of uncontrolled flows of money from the central state to the provinces.  10 per cent of the municipalities of Brazil do not raise any tax at all.  At the same time, 89 per cent of them derive 95 per cent or more of their income from transfer payments from Brasilia, or from the government of their federal state.

Here is the link, which argues, correctly, that Brazil has too much dysfunctional federalism.  I might add that infrastructure here is another (related) problem, read the post above this one.  For a country of Brazil’s importance, the quality of the roads, airports, and so on is abysmal.  Did I mention that only about fifteen million of the voters pay income taxes?


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