Annex 1. Numerical fiscal ru
les considered in the study
COUNTRY
TYPE OF RULE
DEFINITION OF THE RULE (AGREGATE TARGETED
& RELEVANT
ACCOUNTING SYSTEM
)
SECTOR
(S) COVERED
TIME FRAME
STATUTORY BASE
BODY IN CHARGE OF MONITORING
ENFORCEMENT
(BODY
& ACTIONS
IN CASE OF NON
)
AUSTRIA
Budget balance rule
Budget balance as a % of GDP ESA95 accounting
Central, regional and local governments
Multiannual (4 years)
Legal act (based on Constitution)
Governmental structure (Committee with central, regional and local government representatives)
Governmental structure Possibility of sanctions
BELGIUM
Expenditure rule (in the convergence process leading to EMU qualification)
Real expenditure growth rate Budgetary accounting
Central government
Multiannual (4 years)
Coalition agreement
Independent (Court of Auditors and the High Council of Fina
nce) and National
Parliament.
Governmental structure No pre-defined action
Revenue rule (in the convergence process leading to EMU qualification)
Nominal growth of fiscal revenues in relation to nominal GDP growth Budgetary accounting
Central government
Multiannual (4 years)
Coalition agreement
No body
Government (Ministry of Finance) No pre-defined action
Expenditure rule
Real expenditure growth rate Budgetary accounting (consistent with ESA95)
Social security
Multiannual (4 years)
Legal act
Independent (Court of Auditors and Wise Men Committee) and National Parliament
Government (Ministry of Health), possibly social partners Automatic mechanism if sanction
Budget balance rule
Budget balance in nominal terms Budgetary accounting
Social security
Multiannual (4 years)
Coalition agreement
Governmental structure (Ministries of Budget and Social Affairs)
Governmental structure (Ministries of Budget and Social Affairs) No pre-defined action
Budget balance rule
Real expenditure growth rate ESA95 accounting
Regional government
Multiannual (5 years)
Political agreement between central and regional governments i
Independent (High Council of Finance)
Governmental structure Possibility of sanctions
Budget balance rule
Budget balance in nominal terms Budgetary accounting
Local government
Annual
Legal act
Independent (High Council of Finance) and regional Government
Governmental structure (regional government) corrects possible slippages by taking appropriate actions
CZECH REPUBLIC
Expenditure rule
Nominal expenditure ceiling Budgetary accounting
Central government
Multiannual (3 years)
Political agreement (medium-term expenditure framework enshrined in legal act
Government (Ministry of Finance)
None No pre-defined action; government provides explanations in case of non-compliance
Debt rule
Limit on debt service Budgetary accounting
Regional and local governments
Annual
Political agreement
Government (Ministry of Finance)
Government Corrective measures are proposed - possibility of sanctions
DENMARK
Expenditure rule
Real expenditure growth rate ESA95 accounting
General government
Multiannual
Political agreement
Government (Ministry of Finance)
Government (Ministry of Finance) No pre-defined action
Revenue rule
Limits on direct or indirect tax rates (tax freeze)
General government
n.a.
Political agreement
Government (Ministry of Finance)
Government (Ministry of Finance) No pre-defined action
Budget balance rule
Target as a % of GDP in structural terms ESA95 accounting
General government
Multiannual (up to 2010)
Political agreement
Government (Ministry of Finance)
Government (Ministry of Finance) No pre-defined action
ESTONIA
Budget balance rule
Budget balance in nominal terms Budgetary accounting
General government
Multiannual
Coalition agreement
Government (Ministry of Finance)
Government and national Parliament No pre-defined action; possibility of cuts in expenditure if revenue shortfall
