Electoral systems impact fiscal policies in Latin America, leading to larger deficits.
The type of voting system and budget procedures in Latin American countries can impact how big their government is, how much debt they have, and how they manage their money during economic ups and downs. Countries with voting systems that have many districts and lots of different political parties tend to have bigger governments, more debt, and spend money in ways that follow the ups and downs of the economy. On the other hand, countries with clear and organized budget procedures tend to have lower debt and deficits.