Expenditure Ceilings - A Survey

Author/Editor: Ljungman, Gösta
Publication Date: December 01, 2008
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper looks at the factors that have to be considered when designing an aggregate expenditure ceiling. It is argued that expenditure ceilings are effective in promoting fiscal discipline and sustainability, but that a number of trade-offs have to be made when setting up a fiscal framework that will survive in a politically charged environment. The paper illustrates the discussion with a case study of medium-term aggregate expenditure ceilings in three countries: Finland, the Netherlands and Sweden.
Series: Working Paper No. 08/282
Subject(s): Government expenditures | Budgetary policy | Finland | Netherlands | Sweden | Fiscal policy | Political economy | Fiscal sustainability | Inflation

Author's Keyword(s): Expenditure ceilings | fiscal rules | fiscal policy
Publication Date: December 01, 2008
Format: Paper
Stock No: WPIEA2008282 Pages: 55
US$18.00 (Academic Rate:
US$18.00 )
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