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Contrary to recent research, we find an "anti-political" budget cycle in a panel of fifteen Latin American democracies from 1973 to 2000. During the period in which Latin America underwent the most lasting and widespread wave of democratization, elections worked to limit the degree to which incumbents manipulate fiscal policies for electoral advantage. We show that governments undertook fiscal adjustment by reducing spending in the election year and in the inaugural year of the newly elected government. Though the capacity to enact austerity is moderated by the transition to democracy, new Latin American democracies also adhere to fiscal restraint. This paper shows that, at most, the period of democratic transition in Latin America may postpone bitter fiscal adjustments to periods when democratic regimes are stable. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]