The budget should be balanced, the treasury should be refilled, public debt should be reduced…M. T. CICERO (63 B.C.)
Selected Countries: Summary of Fiscal Policy Rules1/
|Statute 4/||Sanction 5/|
|Germany||1969 6/||NG, SG||CB||C||J|
Excluding prohibition or limits on financing from specific sources.
General government (GG), national (central, federal) government (NG) or subnational (including local) government (SG).
Budget rules consist of overall balance (OB), operating balance (PB), or current balance (CB), subject to a prescribed limit on deficit (DL) as a proportion of GDP, applied on an annual basis, except if specified on a multiyear (MY) basis. Also, a contingency fund (CF) is provided in some cases. Additional rules consist of limits on primary expenditure (EL) or wage bill (WL). Debt rules are specified as a limit for a given year (SL) or permanently (PL), as a proportion of GDP or of government revenue.
Constitution (C), legal provision (L), or international treaty (T).
Sanctions for noncompliance: reputational (R), judicial (J), or financial (F).
The origins of the present rule can be traced to the Constitution of 1871, subject to modifications in 1919 and 1949.