AUSTERITY: Brazilian Fiscal Policy as an Expression of the Contradiction between Neoliberalism and the Democratic State of Law

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Maria Julia de Castro e Sousa
Vinicius Henrique de Oliveira Borges
José Duarte Neto

Abstract

This paper addresses two contradictory legal phenomena from Brazilian public reality. It examines the tension between neoliberal fiscal austerity policies and the principles of the Democratic Rule of Law. The article conceptualizes both phenomena and analyzes the impact of fiscal austerity within the national legal framework, focusing on the now-repealed Constitutional Amendment No. 95/2016 and the current Complementary Law n. 200/2023. Finally, it offers a descriptive approach, in which it argues the necessity of withdrawing from austere and neoliberal policies to ensure full compliance with the constitutional framework of the Democratic Rule of Law. The analysis is grounded in theoretical and normative methodology.


Keywords: Democratic Rule of Law; Neoliberalism; Austerity; Social rights; Federal Constitution

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DE CASTRO E SOUSA, Maria Julia; DE OLIVEIRA BORGES, Vinicius Henrique; DUARTE NETO, José. AUSTERITY: Brazilian Fiscal Policy as an Expression of the Contradiction between Neoliberalism and the Democratic State of Law. Revista Brasileira de Teoria Constitucional, Florianopolis, Brasil, v. 10, n. 2, 2025. DOI: 10.26668/IndexLawJournals/2525-961X/2024.v10i2.11023. Disponível em: https://indexlaw.org/index.php/teoriaconstitucional/article/view/11023. Acesso em: 5 apr. 2025.
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Author Biographies

Vinicius Henrique de Oliveira Borges, Universidade Estadual Paulista Júlio de Mesquita Filho - UNESP

Lawyer; Master's student in Law at São Paulo State University "Júlio de Mesquita Filho," with the research topic Federation and Democracy: Theoretical Links. CAPES/DS Scholarship Holder (03/2023 to 02/2024); scholarship attorney in the Agreement between São Paulo State University and the Public Defender's Office of the State of São Paulo.

José Duarte Neto, Universidade Estadual Paulista Júlio de Mesquita Filho - UNESP

Ph.D. in Law from the University of São Paulo (2009). Master’s in Law from the Pontifical Catholic University of São Paulo (2001). Law degree from São Paulo State University "Júlio de Mesquita Filho" (1994). Assistant Professor of Constitutional Law and Human Rights at the Faculty of Human and Social Sciences (FCHS) – UNESP – Franca Campus.