C
OUNTRY
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
- COMPLIANCE
)
Debt rule
Debt limits as a % of budgeted revenues Budgetary accounting
Local government
Annual
Legal act
Government (Ministry of Finance)
Government and national Parliament Proposition of corrective measures (possible reduction in transfers)
FINLAND
Expenditure rule
Real expenditure ceiling Budgetary accounting
Central government
Multiannual (5 years)
Political agreement
Government (Ministry of Finance)
Governmental structure proposes corrective measures
Budget balance rule
Budget balance as % GDP ESA95 accounting
Central government
Multiannual (5 years)
Political agreement
Government (Ministry of Finance)
Governmental structure No pre-defined action (political pressure to ensure compliance)
Debt rule
Debt to GDP ratio has to be reduced Budgetary accounting
Central government
Multiannual (5 years)
Political agreement
Government (Ministry of Finance)
Governmental structure No pre-defined action (political pressure to ensure compliance)
Revenue rule
Allocation of revenue surpluses ESA95 accounting
Social security
Multiannual (business cycle)
Legal act
Governmental structure (Ministry of Social Affairs and Health).
Independent enforcer No pre-defined action
Budget balance rule
Budget balance rule in nominal terms Budgetary accounting
Local government
Multiannual (4 years)
Legal act
Independent (auditing committees) and governmental structure (Ministry of Interior)
Same as monitoring Preparation of plans to cover eventual deficits, possible personal admonitions
FRANCE
Expenditure rule
Real expenditure growth rate Budgetary accounting
Central government
Annual
Political agreement
Independent (Court of Auditors) and National Parliament
No pre-defined action in case of non-compliance
Revenue rule
The government has to pre-define the allocation of possible higher-than-expected tax revenue Budgetary accounting
Central government
Annual
Legal act
Independent (Court of Auditors) and National Parliament
No pre-defined action in case of non-compliance
Expenditure rule
Ceiling in volume for health expenditure growth rate ESA95 accounting
Social security
Annual
Legal act
Independent Alert Committee and Court of Auditors
Independent Alert Committee proposes corrective measures
Budget balance rule
Golden rule Budgetary accounting
Local government
Annual
Legal act
Independent (regional Court of Auditors)
Obligation to propose corrective measures
GERMANY
Budget balance rule
Budget balance in nominal terms Budgetary accounting
Central government
Annual
Constitution and legal act
Government (Ministry of Finance) and National Parliament
Possibility of a challenge at Constitutional Court No pre- defined action
Expenditure rule
Nominal expenditure growth rate Budgetary accounting
Central and regional governments
Multiannual (5 years)
Political agreement between central and regional governments
Governmental stru
cture (Financial
Planning Council with central, regional and local members)
None (Financial Planning Council can criticise rule violations and deviations) No pre-defined action
Budget balance rule
Budget balance in nominal terms (golden rule) Budgetary accounting
Regional government
Annual
Constitution
Government (Ministr
ies of Finance of
Länders)
None, but possibility of a legal challenge at the Constitutional Court No pre-defined action
Debt rule
Specific amount of debt in nominal terms Budgetary accounting
Local government
Annual (1 or 2 years)
Legal act
Governmental structure (Communal Supervisory Agencies of the Länder)
Governmental structure Permission for credits refused
Budget balance rule
Budget balance in nominal terms Budgetary accounting
Local government
Annual
Legal act
Governmental structure (Communal Supervisory Agencies of the Länder)
Governmental structure Clear actions are foreseen in case of non-compliance
HUNGARY
Debt rule
Ceiling in proportion with capacity to repay debt Budgetary accounting
Local government
Annual
Legal act
No official body (supervision of private banks)
None No pre-defined action
IRELAND
Expenditure rule
Automatic allocation of expenditure to the National Pension Reserve Fund Budgetary accounting
Central government
Annual
Legal act
Government (Ministry of Finance)
Government No pre-defined action