THE EFFICIENCY OF TAX EXPENDITURE AND THE USE OF FISCAL WAIVER POLICIES IN CULTURE

The article aims to explain the financing mechanism of tax exemption policies in Brazil. It aims to verify the quality of public spending and the effectiveness of the use of these policies, from the point of view of the Economic Constitutional Law, to allow adjustments in the allocation of public resources. In Part I, the study seeks to understand the legal framework of fiscal renunciation as an instrument to foster economic dynamism in order to reduce inequalities, provided that it is correctly integrated into the fiscal budget, so that expenditures are more effective, and the objectives achieved. It also demonstrates the conceptual divergence of national legislation compared to the understanding adopted by national and international public bodies. Part II presents a brief exegesis of the liberal and developmental thoughts on the subject in order to demonstrate the failures of tax expenditures and the evolution of public policies. Part III focuses on the Culture sector and its accountability. The analysis of the public expenditure based on the Rouanet Law make it possible to affirm that the constitutional objectives of the fiscal renunciation policy are not being achieved. As a conclusion, the study presents suggestions. For an efficient allocation of public resources, tax exemption should be considered as an exceptional and temporary mechanism to correct regionalized economic and social distortions. Thus, public agents should avoid centralizing public resources where there is economic dynamism, in favor of other regions that do not yet have significant economic development.