Role of the Legislature in Budget Processes

Ian Lienert

Chapter 6 in The International Handbook of Public Financial Management, 2013, pp 116-136 from Palgrave Macmillan

Abstract: Abstract The legislature plays an important role in shaping the annual budget and in providing budgetary oversight. When fiscal policies and medium-term budgetary objectives are debated in parliament and annual budget laws are adopted by the legislature, budget strategies and policies are “owned” by the elected representatives. If the legislature is bypassed or is inactive in budget decision making, fiscal policies are decided by government politicians on the advice of unelected officials. In the absence of strong accountability arrangements on the government, there is a risk that budgetary policies reflect the wishes of unelected elites. In summary, the active engagement of parliament in the budget process is usually considered to be an essential part of democracy.

Keywords: Fiscal Policy; Annual Budget; Budget Process; Fiscal Rule; Annual Account (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-31530-4_7

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DOI: 10.1057/9781137315304_7

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