Microsoft Word - 00_Title_draft.doc

Swedish experience with medium-term, nominal expenditure rules. They were introduced in response to
a severe economic and fiscal crisis in the mid-1990ies. The authors point out that these rules decisively
influenced the ensuing fiscal consolidation. The rules were very successful although, to some extent, they
also promoted incentives to circumvent them. Bobay (2005) describes the French budget reform of 2001.
The paper focuses on the new constitutional Bylaw regarding budget appropriation and implementation
and describes the new system of programme-based budgeting, the new appropriations powers of the
Parliament, the increased autonomy of the administration, and the integrated performance system.