Debêntures de infraestrutura: qual fração do custo fiscal é transferida aos projetos?

Abstract

The paper evaluates the degree of fiscal efficiency of the allocation of subsidies granted by the Federal Government through the issuance of the so-called “debentures of infrastructure”, created by Law 12,431. The work estimated which fraction of each R$ 1 of fiscal revenues waived by Brazilian IRS, due to the special tax treatment offered to certain classes of investors who acquire those debt instruments, is effectively transferred as a reduction of the infrastructure projects funding costs. It also discusses possible reasons for a significant part of the benefit not being passed through to the projects funding costs. Finally, there are considerations on alternative institutional arrangements for a more efficient allocation of the subsidy granted to elegible/externality intensive infrastructure projects and also on other negative effects on capital markets development due to excessive segmentation induced by distorted tax incentives.