Faithin Omaha eBook Collection

Download or read book Fiscal Rules and the Budget Process written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1996-06-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the rationale for the imposition of fiscal rules as a way to reduce budgetary imbalances. It presents theoretical arguments for the existence of a “fiscal deficit bias” and the empirical evidence on the economic, political and institutional factors leading to this bias. In the context of these findings, it discusses the potential role of legal constraints on the level of key fiscal variables, and of reforms in budgetary procedures in enhancing fiscal discipline. It also evaluates proposals for budgetary reform in Italy.