Fiscal Rules in Response to the Crisis: Toward the "Next-Generation" Rules: A New Dataset

By Nina Budina, Andrea Schaechter, Anke Weber, Tidiane Kinda

July 1, 2012

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Nina Budina, Andrea Schaechter, Anke Weber, and Tidiane Kinda. Fiscal Rules in Response to the Crisis: Toward the "Next-Generation" Rules: A New Dataset, (USA: International Monetary Fund, 2012) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Strengthening fiscal frameworks, in particular fiscal rules, has emerged as a key response to the fiscal legacy of the crisis. This paper takes stock of fiscal rules in use around the world, compiles a dataset - covering national and supranational fiscal rules, in 81 countries from 1985 to end-March 2012 - and presents details about the rules’ key design elements, particularly in support of enforcement. This information is summarized in a set of fiscal rules indices. Three key findings emerge: (i) many new fiscal rules have been adopted and existing ones strengthened in response to the crisis; (ii) the number of fiscal rules and the comprehensiveness of the design features in emerging economies has caught up to those in advanced economies; and (iii) the "next-generation" fiscal rules are increasingly complex as they combine the objectives of sustainability and with the need for flexibility in response to shocks, thereby creating new challenges for implementation, communication, and monitoring.

Subject: Budget planning and preparation, Expenditure, Fiscal policy, Fiscal rules, Fiscal stance, Public financial management (PFM)

Keywords: Budget balance rule, Budget planning and preparation, Capital expenditure, Caribbean, Debt rule, Expenditure rule, Fiscal governance, Fiscal policy, Fiscal rule, Fiscal rules, Fiscal stance, Global, Revenue rule, Rules index, Supranational rule, West Africa, WP

Publication Details

Pages:

49
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2012/187
Stock No:

WPIEA2012187
ISBN:

9781475505351
ISSN:

1018-5941

Notes

Fiscal Rules Dataset, 1985 - 2012

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