ABSTRACT
A comparison between East and Southeast Asian countries and Latin American countries is made with respect to public finance, Special emphasis is placed on a fiscal comparison during the 1970s and the 1980s. Government deficits widened more in Latin America than in Asia in the corresponding two periods. An unprecedent price hike in Latin America is positively related to these large deficits. Remarkable increases in interest payments for public debts during the 90s in Latin America narrowed the margin of fiscal policies. Therefore, some measures on debt relief. as well as fundamental tax reform are urgently needed in Latin America.
KEYWORDS:
public sector funding; public spending