Should Advanced Countries Adopt a Fiscal Responsibility Law?
Electronic Access:
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Summary:
Fiscal Responsibility Laws (FRLs) appear to be more popular in middle-income countries than advanced countries, even though their success is limited. The reasons why few advanced countries have a FRL include: the existing legal framework for the budget system is adequate; supranational rules and political agreements in EU countries; failed attempts to include quantitative fiscal rules in laws; lack of consensus or interest in attaining the goals of FRL-type legislation; and lack of need for a law to regulate fiscal transparency, accountability and macro-fiscal stabilization. Without commitment to fiscal discipline, adoption of a FRL may not contribute to attaining fiscal consolidation goals.
Series:
Working Paper No. 2010/254
Subject:
Budget planning and preparation Fiscal policy Fiscal rules PFM legal and regulatory frameworks Public debt
English
Publication Date:
November 1, 2010
ISBN/ISSN:
9781455209545/1018-5941
Stock No:
WPIEA2010254
Pages:
45
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