Expenditure Ceilings—A Survey

Gösta Ljungman

No 2008/282, IMF Working Papers from International Monetary Fund

Abstract: This paper looks at the factors that have to be considered when designing an aggregate expenditure ceiling. It is argued that expenditure ceilings are effective in promoting fiscal discipline and sustainability, but that a number of trade-offs have to be made when setting up a fiscal framework that will survive in a politically charged environment. The paper illustrates the discussion with a case study of medium-term aggregate expenditure ceilings in three countries: Finland, the Netherlands and Sweden.

Keywords: WP; expenditure ceiling; government expenditure; fiscal policy; central government; expenditure category; expenditure forecast; expenditure-reducing measure; investment expenditure; structural surplus; time horizon; Expenditure ceilings; fiscal rules; government finances; expenditure ceiling in the Netherlands; expenditure development; budget expenditure; expenditure ceilings regime; medium-term expenditure ceiling; expenditure level; Budget planning and preparation; Interest payments; Fiscal governance; Inflation (search for similar items in EconPapers)
Pages: 55
Date: 2008-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2008/282

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