Should Advanced Countries Adopt a Fiscal Responsibility Law?

Ian Lienert

No 2010/254, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; EU country; FRL-type law; government Financial Reporting Act; annual budget; accounting system; central government; country experience; government accounting; government information; government regulation; nonfinancial enterprise; public finance (search for similar items in EconPapers)
Pages: 45
Date: 2010-11-01
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Citations: View citations in EconPapers (21)

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