Uncertain revenues, certain debts: budgeting and fiscal adjustment mechanisms in Goiás (c.1870–1890)

Abstract

This article examines, through a wide range of primary sources, the public finances of the province of Goiás between c.1870 and 1890, focusing on revenue collection, fiscal constraints, financing strategies, and the dynamics of public debt. The article argues that deficits and indebtedness should not be understood merely as accounting imbalances, but as expressions of the limits of constructing the provincial public treasury in an economy of low mercantile density, with a narrow tax base strongly dependent on cattle raising. The provincial tax base was narrow and largely dependent on livestock production, particularly cattle exports, making revenues vulnerable to market fluctuations and contributing to budgetary instability.
The division of tax competencies within the Empire limited the expansion
of local revenues, resulting in recurrent deficits and the failure to meet collection
targets. To address fiscal imbalances, frequent mid-year adjustments
were adopted, relying on credit operations, occasional transfers from the
central government, and limited attempts at expenditure containment. From
the late 1870s, the use of provincial debt bonds to settle expenditures intensified,
increasing indebtedness. In the final years of the period, public
debt remained high relative to revenues, underscoring indebtedness as a
structural feature of provincial finances.