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Fiscal Rules and the Budget Process
Author:
Mr. Gian M Milesi-Ferretti
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Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 060
Language:
English
Publication Date:
01 Jun 1996
DOI:
https://doi.org/10.5089/9781451848007.001
ISBN:
9781451848007
ISSN:
1018-5941
Pages:
39
Keywords:
WP; budget proposal; government resignation; finance minister; government fiscal policy decision; government policy formation; government vis-à-vis parliament; government stage; Budget planning and preparation; Government debt management
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the rationale for the imposition of fiscal rules as a way to reduce budgetary imbalances. It presents theoretical arguments for the existence of a “fiscal deficit bias” and the empirical evidence on the economic, political and institutional factors leading to this bias. In the context of these findings, it discusses the potential role of legal constraints on the level of key fiscal variables, and of reforms in budgetary procedures in enhancing fiscal discipline. It also evaluates proposals for budgetary reform in Italy.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund