Budget Institutions for Subnational Fiscal Discipline: Local Fiscal Rules in Post-Crisis EU Countries

2021 ◽  
pp. 23-38
Author(s):  
Gerard Turley ◽  
Christian Raffer ◽  
Stephen McNena
Keyword(s):  
Fiscal Rules ◽  
Fiscal Discipline ◽  
Eu Countries ◽  
Budget Institutions

Analysis of tax-spend nexus for Russian regional budgets

2020 ◽  
pp. 5-29
Author(s):  
Evsey T. Gurvich ◽  
Natalia A. Krasnopeeva
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
National Economy ◽  
Federal Budget ◽  
Fiscal Rules ◽  
Fiscal Discipline ◽  
Federal Level ◽  
Regional Budgets ◽  
Econometric Technique

We study the tax-spend nexus for Russian regional budgets. Causal relationship running from taxing to spending is found, thus supporting the concept “tax and spend” suggested by M. Friedman. Next, elasticity of expenditure by revenue is estimated for a panel of 80 regional budgets basing on data for 2000—2017. Estimates are in the range of 0.72 to 0.78 (depending on the econometric technique), which exceeds elasticity for the federal budget more than twice. This evidences that fiscal policy at the sub-federal (as distinct from the federal) level has clear pro-cyclical nature. Besides, the largest sensitivity of expenditure to revenue shocks is found for the item “national economy”, implying marked adverse implications for economic growth. We suggest to mitigate this effect by modifying fiscal rules for sub-federal budgets. They are currently aimed primarily at enhancing fiscal discipline, with less emphasis on countercyclical policy, insulating economy from fiscal shocks.

The Future Ain’t What It Used to Be

2018 ◽  
Author(s):  
Ashoka Mody
Keyword(s):  
Financial Markets ◽  
Social Problems ◽  
Financial Integration ◽  
Fiscal Rules ◽  
Fiscal Discipline ◽  
European Project ◽  
The Future ◽  
The Right

This chapter describes two scenarios, the two possible ways in which the final act of the European project plays out. In the first scenario, European authorities remain confident that they have essentially been on the right track and they continue to make modest course corrections, which they believe will ensure a brighter European future. However, the elusive and frustrating pursuit of deeper economic and financial integration causes more economic and political damage. Setbacks and crises recur to test the euro and its accompanying political vision. In the second scenario, the pro-European vision, European authorities recognize the important truth that “more Europe” will not solve Europe's most pressing economic and social problems. They dismantle the economically counterproductive and politically corrosive system of fiscal rules and rely more on financial markets to enforce fiscal discipline. Paradoxically, the euro survives, not because it adds value but because it becomes largely irrelevant.

What Determines Fiscal Deficits in Europe? The Impact and Interaction of EMU Membership, Fiscal Rules, Fiscal Councils and Creative Accounting

2020 ◽  
Vol 71 (1) ◽  
pp. 15-41
Author(s):  
Dominik Maltritz ◽  
Sebastian Wüste
Keyword(s):  
Fiscal Rules ◽  
Special Focus ◽  
Annual Data ◽  
Budget Balance ◽  
Fiscal Deficits ◽  
Eu Countries ◽  
Creative Accounting ◽  
Stock Flow ◽  
The Impact

AbstractWe search for drivers of fiscal deficits in Europe using a data panel containing annual data of 27 EU countries in the years 1991–2012. Our special focus is on the influence of fiscal rules as well as on fiscal councils, i. e. institutions that may help to reduce deficits and enforce fiscal rules by advising governments. We distinguish between internal fiscal rules and external rules that result from EMU membership. In addition, we consider the impact of “creative accounting”, i. e. measures that help to circumvent fiscal rules, which we approximate by so called stock-flow-adjustments. We especially analyze the interactive influence of the mentioned variables on the budget balance.

scholarly journals National fiscal rules and fiscal discipline in the European Union

2021 ◽  
Vol 53 (20) ◽  
pp. 2337-2359
Author(s):  
Amélie Barbier-Gauchard ◽  
Kea Baret ◽  
Alexandru Minea
Keyword(s):  
European Union ◽  
Fiscal Rules ◽  
The European Union ◽  
Fiscal Discipline

scholarly journals National fiscal frameworks in the post-crisis European Union

Equilibrium ◽  
2018 ◽  
Vol 13 (4) ◽  
pp. 623-642
Author(s):  
Agata Szymańska
Keyword(s):  
Public Finance ◽  
European Union ◽  
Value Added ◽  
Fiscal Rules ◽  
Agglomerative Clustering ◽  
Clustering Method ◽  
Public Finances ◽  
Eu Countries ◽  
The Eu ◽  
Fiscal Frameworks

Research background: The latest economic and financial crisis has seriously injured European Union Member States, affecting the condition of their public finances. In the face of the crisis, the EU made a special effort to increase the effectiveness of national fiscal frameworks, e.g. by improving the compliance with legislation. The post 2009 reforms were aimed at providing a solid economic foundation for the national fiscal frameworks, especially in the high-debt euro area countries. Purpose of the article: The goal of this research is twofold. Firstly, it aims to provide an outline of the national fiscal governance in the EU. Secondly, the paper analyzes the changes in the core measures of fiscal governance in the EU between the crisis period and the year 2016 (due to the latest available data) and investigates the similarities in the progress made by the 28 EU countries in restoring balance in public finance. Methods: To achieve the goal, the literature review and the analysis of core elements of national fiscal frameworks are provided. In the empirical section the grouping method for all 28 EU countries based on the Ward's agglomerative hierarchical clustering method is employed. The study uses data derived from the AMECO database (in the case of fiscal data) and the European Commission thematic data for quality indexes of particular elements of fiscal governance (numerical fiscal rules, medium-term budgetary frameworks and independent fiscal institutions). Findings & Value added: This paper contributes to the literature by, on the one hand, attempting to analyze changes in main fiscal governance measures and, on the other hand, by assessing their link with public finance through employment of the agglomerative clustering method. Based on the results, the conclusion about the importance of the improvement in fiscal frameworks is provided. The analysis shows that countries with better national fiscal framework achieved better results in public finances regardless the macroeconomic conditions.

UNIQUELY SINGAPORE'S BUDGETARY SYSTEM AND SOCIAL PROTECTION FINANCING SCHEMES

2014 ◽  
Vol 59 (03) ◽  
pp. 1450024 ◽  
Author(s):  
NGEE CHOON CHIA
Keyword(s):  
Economic Growth ◽  
Economic History ◽  
Social Protection ◽  
Fiscal Sustainability ◽  
Fiscal Rules ◽  
Budgetary Process ◽  
Demographic Dividend ◽  
Welfare Programs ◽  
Fiscal Discipline ◽  
Financing Schemes

This paper examines Singapore's fiscal position and its unique way of financing targeted welfare programs. We examine how reserves are accumulated through fiscal discipline during times of phenomenal economic growth in Singapore and when Singapore was enjoying demographic dividend. The existence of the large accumulated reserves has resulted in particular features of the Singapore's budgetary process, such as fiscal rules, which govern the utilization of revenues from the reserves. Innovative budget implementation, such as Block Budgeting, has helped Singapore to ensure fiscal sustainability. The accumulation of reserves throughout its economic history has afforded Singapore a unique way to fund social protection through special transfers and funds, without having to raise taxes.

scholarly journals Proces doskonalenia oceny równowagi budżetowej w Unii Gospodarczej i Walutowej

2015 ◽  
Vol 4 (3) ◽  
pp. 13-26
Author(s):  
Juliusz Giżyński ◽  
Ryszard Wierzba
Keyword(s):  
Global Financial Crisis ◽  
Fiscal Rules ◽  
Stability And Growth Pact ◽  
Budget Deficits ◽  
Budget Balance ◽  
Fiscal Discipline ◽  
Political Will ◽  
Growth Pact ◽  
The Stability ◽  
The Global Financial Crisis

Fiscal discipline is one of fundamental requirements of the Economic and MonetaryUnion as specified in the provisions of the Maastricht Treaty (1992) and laterelaborated on in the Stability and Growth Pact (1997). EMU Member States fromthe beginning had serious difficulties in adhering to the fiscal rules, which ledto the first reform of the SGP in 2005 resulting in more flexible fiscal rules. Despitegood economic situation, EMU’s economies still had budget deficits which furtherincreased with the global financial crisis causing government debts to soar overacceptable limits. In due time, two further reforms of SGP were enacted, in 2011and 2013, introducing new indicators and improvements in the assessment of thegovernment budget balance in the euro area. Nevertheless, enforcement of newrules still will depend on EMU governments political will.

FISCAL RESPONSIBILITY LAWS: ARE THEY NEEDED?

2013 ◽  
Vol 04 (03) ◽  
pp. 1350017 ◽  
Author(s):  
IAN LIENERT
Keyword(s):  
High Risk ◽  
Legal Framework ◽  
Fiscal Rules ◽  
Political Commitment ◽  
Fiscal Discipline ◽  
Fiscal Responsibility ◽  
Fiscal Transparency ◽  
The World ◽  
Fiscal Stabilization ◽  
Transparency And Accountability

Can fiscal transparency, accountability and macro-fiscal stabilization be imposed by adopting a fiscal responsibility law (FRL)? Skeptics argue that law is impotent or that the existing legal framework for the budget system suffices. In Europe, supranational fiscal rules were previously seen to be adequate. After reviewing the experience with FRLs around the world, this paper concludes that FRLs enhance fiscal transparency and accountability. However, the adoption of a FRL for attaining fiscal stability goals succeeds only if there is strong political commitment to fiscal discipline. Also, the inclusion of quantitative fiscal rules in FRLs is a high-risk undertaking.

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