Suchergebnisse

There are several approaches to assessing the sustainability of a country's public finances. Ricardian equivalence is one such approach, in which fiscal sustainability is defined in terms of the neutrality of generational welfare through government fiscal policy. The present work is an attempt to discuss and analyse fiscal sustainability in India in the context of Ricardian equivalence. Different forms of empirically testable equations for testing Ricardian equivalence are derived based on studies by Buiter and Tobin (1978), Kormendi (1983) and Kormendi and Meguire (1990). A key aspect of fiscal sustainability is to ensure generational equity as reflected in India's Fiscal Responsibility and Budget Management (FRBM) Act, 2003. Based on availability of data, empirical evidence is against the presence of Ricardian equivalence, indicating that the fiscal policy India pursued during the study period (1974–2011) has been detrimental to generational welfare neutrality. JEL Classification: H30, H20, H50, H62, H63

The sustainability of fiscal deficits has been receiving increasing attention. The issue is paramount for the newly formed euro area and this is one of the motivations of this paper. In order to assess the sustainability of budget deficits, co-integration tests between public expenditures and public revenues, allowing for structural breaks, are performed for the EU countries for the 1970-2003 period. The "unpleasant" empirical results show that with few exceptions fiscal policy may not have been sustainable. EU governments therefore could risk becoming inherently highly indebted, even if the debt-to-GDP ratios seemed to be somehow stabilising at the end of the 1990s

Rising longevity, falling fertility rates, and the retirement of the baby boom generation will substantially raise age-related government spending in most advanced and many emerging market countries. This paper assesses the evolution of fiscal sustainability for each of the G-7 countries using two standard primary gap indicators. The estimated fiscal adjustment required to ensure long-run fiscal sustainability is substantial for all G-7 countries. In particular, ensuring fiscal sustainability would require an average improvement in the primary balance of about 4 percentage points of GDP. While

AbstractWith the Great Recession leaving nearly all advanced economies with substantially higher debt–gross domestic product ratios, this paper re‐evaluates the long‐term fiscal sustainability of these economies based on current estimates of their current‐policy fiscal trajectories. Through measuring fiscal imbalance, we find that for many countries, short‐term fiscal measures such as the debt–gross domestic product ratio and current budget deficits as a share of gross domestic product bear little relationship to the sustainability of policy. The longer‐term challenges these countries face are related much more to the future fiscal challenge of growing primary deficits, associated with the cost of providing pensions and health care in the face of growing old‐age dependency ratios. While focusing on managing the short‐term debt burden may help avoid crises like the one being played out in Greece, attention and policy actions must eventually turn to the longer‐term fiscal problem.

We evaluate the impact of government spending efficiency on fiscal sustainability for a panel of 35 OECD countries during the period of 2007-2020. To answer our research question we first compute the magnitude of the responses of government revenues to changes in government spending. Next, we make use of so-called government spending efficiency scores, which efficiently indicate how governments can maintain their level of performance whilst using fewer inputs. Our results show that for the input efficiency scores obtained, countries' fiscal balance and fiscal sustainability is directly improved by the use of less public resources, whilst maintaining the same level of output. In the cases of the output efficiency scores, the commitment of increased government outputs can lead to higher economic growth and the generation of additional government revenues, which also improves fiscal sustainability. Specifically, rationalising public expenditures without jeopardising the actual level of public goods and provision of services is a stronger determinant of fiscal sustainability, as well as for the improvement of the primary budget balance.

The paper proves the necessity to introduce a new economic category – fiscal sustainability. It is proved that the category introduced will allow justifying the taxable capacity of the organization. The characteristic of the existence of three possible states of fiscal sustainability is given: deficit – perfect – surplus. Some exogenous and endogenous factors affecting the fiscal sustainability are highlighted: taxation scheme used; geographical position of an enterprise; level of development of tax planning and forecasting in an organization; participation in a shadow economy, changes in the level of economic development; changes in tax legislation; changes in tax burden; changes in the level of control by tax authorities; changes in the level of inflation. A possible existence of operational, tactical, strategic, as well as global and local fiscal sustainability is suggested. Recognizing the need to assess the fiscal sustainability for its control, a proposal on the necessity to take into account such indicators as viability, flexibility, and adaptability is put forward. ; В работе обосновывается необходимость введения новой экономической категории – налоговая устойчивость. Доказывается, что вводимая категория позволит обосновать налоговый потенциал организации. Дается характеристика существования трех возможных состояний налоговой устойчивости: дефицитное – идеальное – профицитное. Выделяется состав экзогенных и эндогенных факторов, влияющих на налоговую устойчивость: применяемый режим налогообложения; географическое положение предприятия; уровень развития налогового планирования и прогнозирования в организации; участие в теневой экономике, изменение уровня развития экономики; изменение налогового законодательства; изменение налоговой нагрузки; изменение уровня контроля со стороны налоговых органов; изменение уровня инфляции. Высказывается предположение о возможном существовании оперативной, тактической и стратегической налоговой устойчивости, а также глобальной и локальной. Признавая необходимость оценки налоговой устойчивости для управления ею, выдвинуто предложение о необходимости задействования для этого показателей жизнеспособности, гибкости, адаптивности.

New Zealand, like many other countries, is experiencing a changing demographic profile from one dominated by young people during the 20th century to one where the population is more evenly distributed across age groups. This has implications for the economy and society, including the government's fiscal position in the future and for the sustainability of its spending programmes. This paper discusses the link between the government budget constraint and fiscal sustainability, how fiscal sustainability can be measured and why it's important. We also examine the Treasury's current approach to modelling the extent of fiscal adjustment required and options available to achieve this adjustment. The paper proposes criteria to evaluate potential policy changes to address these long-term fiscal challenges and suggests areas where further work could be worthwhile.

In Japan, the so-called "Great Heisei Amalgamations" were executed over the period from 1999 to 2010. During this time the number of municipalities decreased from 3,232 to 1,727. Some of the extant literature suggests that the reduction of local allocation tax (LAT) grants to smaller municipalities had provided a strong incentive for the voluntary amalgamations. In this study, through empirical analysis of a seven-year panel of rich financial data, the factors salient to these voluntary municipal amalgamations are considered from the perspective of participating local governments. The results demonstrate that fiscal unsustainability, which was largely caused by central government policies, was the main motivation for municipalities with low financial capabilities to amalgamate.