IMF Working Papers

Should Advanced Countries Adopt a Fiscal Responsibility Law?

By Ian Lienert

November 1, 2010

Download PDF

Preview Citation

Format: Chicago

Ian Lienert. Should Advanced Countries Adopt a Fiscal Responsibility Law?, (USA: International Monetary Fund, 2010) accessed December 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

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.

Subject: Budget planning and preparation, Fiscal policy, Fiscal rules, PFM legal and regulatory frameworks, Public debt

Keywords: Accounting system, Annual budget, Central government, Country experience, EU country, FRL-type law, Government accounting, Government Financial Reporting Act, Government information, Government regulation, Nonfinancial enterprise, Public finance, WP

Publication Details

  • Pages:

    45

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2010/254

  • Stock No:

    WPIEA2010254

  • ISBN:

    9781455209545

  • ISSN:

    1018-5941

You May Also Be Interested In...

A Confidence-Financial Inclusion Nexus in the Caucasus and Central Asia?

December 20, 2024

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Islamic Republic of Mauritania: Staff Report for the 2024 Article IV Consultation, Third Review Under the Arrangements Under the Extended Credit Facility and Extended Fund Facility, Request for Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania

December 20, 2024

Ecuador: 2024 Article IV Consultation and First Review Under the Extended Arrangement Under the Extended Fund Facility and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

December 19, 2024