The Challenges of State Financing: fiscal austerity and the enforcement of social rights in the Democratic Rule of Law

Abstract

This article analyzes the relationship between fiscal austerity policies and the allocation of resources within the context of social constitutionalism. Through a bibliographic review, the study demonstrates how the social state, by assuming new responsibilities, has accumulated debts that often did not translate into investments in the constitutionally enshrined fundamental rights. The rise of neoliberalism has consolidated a financial model that prioritizes fiscal balance at the expense of maintaining social rights, leading to the implementation of fiscal adjustments and reforms that benefit the financial system. The research findings indicate that such policies not only restrict the realization of social rights but also reinforce the capture of the public budget by the debt system, thereby undermining the redistributive role of the state. It is concluded that there is a mismatch between democratic principles and the prevailing financial structure, which calls for greater transparency and social control over economic policies to ensure the realization of fundamental rights.