Narrow Your Choices

Refine By Countries

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Browse

You are looking at 1 - 1 of 1 items for :

  • Type: Journal Issue x
  • Public aspects of medicine x
  • IMF How To Notes x
  • International Lending and Debt Problems x
  • Debt service x
  • Exports and Imports x
Clear All Modify Search
Cover IMF How To Notes
How to Design Subnational Fiscal Rules: A Primer
Luc Eyraud, Andrew Hodge, Mr. John Ralyea, and Julien Reynaud
This note discusses how to design subnational fiscal rules, including how to select them and calibrate them. It expands on the guidance provided at the national level on rule selection and calibration in IMF (2018a) and IMF (2018b). Thinking on subnational fiscal rules is still evolving, including their effectiveness (for example, Heinemann, Moessinger, and Yeter 2018; Kotia and Lledó 2016; Foremny 2014), and this note only provides a first analysis based on international experiences and the technical assistance provided by the IMF. Main findings are summarized in Box 1. The note is divided into five sections. The first section defines fiscal rules. The second section discusses the rationale for subnational rules. The third section provides some guidance on how to select the appropriate rule(s) and whether they should differ across individual jurisdictions. The fourth section explores the issue of flexibility by looking at how rules should adjust to shocks. Finally, the last section focuses on the “calibration” of the rules.
Keywords:
FADHTN; HTN; national government; government level; output gap; central government; expenditure rule; government; country; Allowed; CAB rule; governments in OECD country; government control; government unit; government policy; debt rule; debt service rule; government entity; budget balance rule; government rule; Global; Fiscal rules; Debt service; Current spending; Budget planning and preparation; Subnational fiscal RulesHow; design Subnational fiscal rule; fiscal RulesHow; RulesHow to design Subnational fiscal rule