Abstract The article analyses the veto power of territorial governments in Brazil, by examining the parliamentary behaviour of state caucuses (bancadas) as well as their institutional veto opportunities when it comes to matters related to sub-national governments’ revenues and decision-making authority over their own taxes, policy responsibilities and expenditures. The “imposition of losses” upon territorial governments characterized legislative production during the 1989-2006 period, even though these decisions were intensely negotiated. The article concludes that the decision-making centralization the central arenas, […]