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Should Advanced Countries Adopt a Fiscal Responsibility Law?

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  • Mr. Ian Lienert

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.

Suggested Citation

  • Mr. Ian Lienert, 2010. "Should Advanced Countries Adopt a Fiscal Responsibility Law?," IMF Working Papers 2010/254, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2010/254
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    4. Sacchi, Agnese & Salotti, Simone, 2015. "The impact of national fiscal rules on the stabilisation function of fiscal policy," European Journal of Political Economy, Elsevier, vol. 37(C), pages 1-20.
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    8. Chirculescu Maria Felicia, 2022. "The Impact Of The Covid-19 Pandemic On Public Debt At National Level Compared To Other Member States Of The European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 165-172, August.
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    10. Ms. Daria V Zakharova & Ms. Charleen A Gust, 2012. "Strengthening Russia's Fiscal Framework," IMF Working Papers 2012/076, International Monetary Fund.
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    12. Klaus Schmidt-Hebbel, 2012. "Fiscal Policy for Commodity Exporting Countries: Chile's Experience," Documentos de Trabajo 415, Instituto de Economia. Pontificia Universidad Católica de Chile..
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    15. Blume, Lorenz & Voigt, Stefan, 2013. "The economic effects of constitutional budget institutions," European Journal of Political Economy, Elsevier, vol. 29(C), pages 236-251.
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    17. CIUMARA, Tudor, 2016. "Fiscal Responsibility Within An Unstable Economic And Political Environment," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 20(4), pages 54-68.
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    19. Liliana Bunescu & Carmen Comaniciu, 2010. "Issues On Fiscal Policy Objectives In Romania After 2000," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 5(3), pages 116-129, December.

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