Reelection and fiscal rules: Evolution of electoral incentives facing end-ofterm fiscal rules
Political budget cycles. Term limits. Electoral accountability. Fiscal Rules.
This paper disclosure the effect of reelection on the fiscal behavior of incumbents. We use regression discontinuity design (RDD) to compare the expenditures of first and second term mayors in close elections between 2005 and 2020. The results indicate a tendency of increasing the seasonality of budgetary political cycles over the analyzed period, with greater concentration of expenditures in the electoral years in municipalities with first-term mayors who faced competitive elections, especially in personnel expenses, other current expenses and investments, concentrated in the functions of education, sports and leisure. Therefore, this study underscores the necessity for enhancing the Fiscal Responsibility Law and the Electoral Law in a manner that would restore their original capacity to oversee public expenditure during electoral periods.