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This publication summarizes the strengths, weaknesses and challenges presented by the new fiscal covenant, that is, the basic socio-political agreement that legitimizes the role of the State and establishes the areas and scope of government responsibility in the economic and social spheres. Fiscal Covenant also analyzes the fiscal and quasi-fiscal aspects of public action and reviews the progress and changes in the areas of public-sector revenue, expenditure, deficit and debt. It addition, it discusses what has been achieved and what remains to be done in key areas of public management with major fiscal implications - social spending, social security reform, fiscal decentralization, privatization and the modernization of the State.
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