Fiscal waiver through Fundopem and beneficiaries economic sectors

Abstract

During the 90s one of the most important public policies towards economic development in RS was called "investment attraction", which rellied heavily on fiscal benefits.This paper focuses on Fundo Operação Empresa—Fundopem main characteristics, the amount of resources and the beneficiaries economic sectors.It compares those resources with the state's public sector fiscal situation, especially the public investment. It also verifies the benefited sectors and regional industry performance—output and employment—after the fiscal benefits were given.It concludes that RS's industrial sector inicial increased share in national industrial output wasn't sustainable in the following years whithout changes in the state's industrial structure. Key Words: Fiscal benefits; output; employment.