Publication:
Laws for Fiscal Responsibility for Subnational Discipline : International Experience

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dc.contributor.authorLiu, Lili
dc.contributor.authorWebb, Steven B.
dc.date.accessioned2012-03-19T18:00:54Z
dc.date.available2012-03-19T18:00:54Z
dc.date.issued2011-03-01
dc.description.abstractFiscal responsibility laws are institutions with which multiple governments in the same economy -- national and subnational --can commit to help avoid irresponsible fiscal behavior that could have short-term advantages to one of them but that would be collectively damaging. Coordination failures with subnational governments in the 1990s contributed to macroeconomic instability and led several countries to adopt fiscal responsibility laws as part of the remedy. The paper analyzes the characteristics and effects of fiscal responsibility laws in seven countries -- Argentina, Australia, Brazil, Canada, Colombia, India, and Peru. Fiscal responsibility laws are designed to address the short time horizons of policymakers, free riders among government units, and principal agent problems between the national and subnational governments. The paper describes how the laws differ in the specificity of quantitative targets, the strength of sanctions, the methods for increasing transparency, and the level of government passing the law. Evidence shows that fiscal responsibility laws can help coordinate and sustain commitments to fiscal prudence, but they are not a substitute for commitment and should not be viewed as ends in themselves. They can make a positive contribution by adding to the collection of other measures to shore up a coalition of states with the central government in support of fiscal prudence. Policymakers contemplating fiscal responsibility laws may benefit from the systematic review of international practice. One common trait of successful fiscal responsibility laws for subnational governments is the commitment of the central government to its own fiscal prudence, which is usually reinforced by the application of the law at the national as well as the subnational level.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110311132517
dc.identifier.doi10.1596/1813-9450-5587
dc.identifier.urihttps://hdl.handle.net/10986/3354
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5587
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO INFORMATION
dc.subjectACCOUNTABILITY
dc.subjectACCOUNTING
dc.subjectACCOUNTING POLICIES
dc.subjectACCOUNTING STANDARDS
dc.subjectACCRUAL ACCOUNTING
dc.subjectADMINISTRATIVE CONTROL
dc.subjectAGENCY PROBLEMS
dc.subjectAMORTIZATION
dc.subjectARREARS
dc.subjectBAILOUT
dc.subjectBAILOUTS
dc.subjectBANK BAILOUTS
dc.subjectBANK FINANCING
dc.subjectBANK LOANS
dc.subjectBANKING REGULATIONS
dc.subjectBINDING CONSTRAINT
dc.subjectBLOCK GRANTS
dc.subjectBONDS
dc.subjectBORROWER
dc.subjectBORROWING COSTS
dc.subjectBUDGET BALANCE
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectBUDGET DEFICIT
dc.subjectBUDGET DEFICITS
dc.subjectBUDGET PROCESS
dc.subjectBUDGETING
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL GROWTH
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKS
dc.subjectCENTRAL GOVERNMENT
dc.subjectCOLLATERAL
dc.subjectCONSOLIDATION
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCONTINGENT LIABILITIES
dc.subjectCONVERTIBILITY PLAN
dc.subjectCOORDINATION FAILURES
dc.subjectCOUNTRY COMPARISONS
dc.subjectCREDIBILITY
dc.subjectCREDIT CONTRACT
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDIT RATING
dc.subjectCREDIT RATINGS
dc.subjectCREDIT SYSTEM
dc.subjectCREDITOR
dc.subjectCREDITWORTHINESS
dc.subjectCURRENT EXPENDITURES
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT CRISES
dc.subjectDEBT DATA
dc.subjectDEBT FINANCING
dc.subjectDEBT MANAGEMENT
dc.subjectDEBT MARKET
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT OUTSTANDING
dc.subjectDEBT PAYMENTS
dc.subjectDEBT RATIO
dc.subjectDEBT REDUCTION
dc.subjectDEBT RELIEF
dc.subjectDEBT RESTRUCTURING
dc.subjectDEBT RESTRUCTURING AGREEMENT
dc.subjectDEBT RESTRUCTURING AGREEMENTS
dc.subjectDEBT SERVICE
dc.subjectDEBT STOCK
dc.subjectDEBTOR
dc.subjectDEBTS
dc.subjectDECONCENTRATION
dc.subjectDEFICITS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVOLUTION
dc.subjectDOMESTIC BORROWING
dc.subjectDOMESTIC CREDIT
dc.subjectENFORCEMENT MECHANISMS
dc.subjectENFORCEMENT POWER
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectFEDERAL COUNTRIES
dc.subjectFEDERAL DISTRICT
dc.subjectFEDERALISM
dc.subjectFINANCES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RISKS
dc.subjectFINANCIAL STATEMENTS
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL ADJUSTMENT
dc.subjectFISCAL AUTONOMY
dc.subjectFISCAL CONSTRAINTS
dc.subjectFISCAL CRISIS
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL GAPS
dc.subjectFISCAL INSTITUTIONS
dc.subjectFISCAL LEGISLATION
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFISCAL REFORM
dc.subjectFISCAL SUSTAINABILITY
dc.subjectFLOATING DEBT
dc.subjectFOREIGN CURRENCY
dc.subjectGOVERNMENT BOND
dc.subjectGOVERNMENT BOND MARKET
dc.subjectGOVERNMENT BORROWERS
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT FINANCE
dc.subjectGOVERNMENT GUARANTEE
dc.subjectGOVERNMENT INTERVENTION
dc.subjectGOVERNORS
dc.subjectHARD BUDGET CONSTRAINTS
dc.subjectHOLDING
dc.subjectINDEBTEDNESS
dc.subjectINFLATION
dc.subjectINFRASTRUCTURE DEVELOPMENT
dc.subjectINSTRUMENT
dc.subjectINTEREST COST
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BORROWING
dc.subjectINTERNATIONAL CREDIT
dc.subjectINTERNATIONAL FINANCIAL CRISIS
dc.subjectINTERNATIONAL INTEREST
dc.subjectINTERNATIONAL RATING AGENCIES
dc.subjectINVESTMENT SPENDING
dc.subjectISSUANCE
dc.subjectLAWS
dc.subjectLEGAL CONSTRAINTS
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL FRAMEWORKS
dc.subjectLEGISLATION
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLENDING DECISIONS
dc.subjectLEVEL OF GOVERNMENT
dc.subjectLOAN
dc.subjectLOAN GUARANTEES
dc.subjectLOCAL CURRENCY
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectMACROECONOMIC ADJUSTMENT
dc.subjectMACROECONOMIC CRISIS
dc.subjectMACROECONOMIC ENVIRONMENT
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET PRICING
dc.subjectMATURITY
dc.subjectMAYORS
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectMORAL HAZARDS
dc.subjectMUNICIPAL FINANCE
dc.subjectMUNICIPALITIES
dc.subjectNATIONAL DEBT
dc.subjectNATIONAL SECURITY
dc.subjectNATIONAL TREASURY
dc.subjectNET ASSETS
dc.subjectNET DEBT
dc.subjectOPERATING EXPENSES
dc.subjectOPERATING REVENUE
dc.subjectOPERATING SURPLUS
dc.subjectPAYMENT OBLIGATIONS
dc.subjectPENALTIES
dc.subjectPENSIONS
dc.subjectPOLITICAL AUTONOMY
dc.subjectPRINCIPAL-AGENT PROBLEM
dc.subjectPRINCIPAL-AGENT PROBLEMS
dc.subjectPRIVATE CREDITORS
dc.subjectPRIVATE INVESTMENTS
dc.subjectPROVINCES
dc.subjectPROVINCIAL DEBTS
dc.subjectPROVINCIAL FISCAL
dc.subjectPUBLIC BANKS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCE LAW
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC SECTOR DEFICIT
dc.subjectPUBLIC SERVICES
dc.subjectPUBLIC SPENDING
dc.subjectREDEMPTION
dc.subjectRENEGOTIATION
dc.subjectRESERVE
dc.subjectRESERVE BANK
dc.subjectRESERVE BANK OF INDIA
dc.subjectRETIREMENT
dc.subjectRETURN
dc.subjectREVENUE BASE
dc.subjectREVENUE SHARING
dc.subjectRISK PREMIUMS
dc.subjectSAVINGS
dc.subjectSOLVENCY
dc.subjectSOVEREIGN DEBT
dc.subjectSUB-NATIONAL BORROWERS
dc.subjectSUBNATIONAL
dc.subjectSUBNATIONAL DEBT
dc.subjectSUBNATIONAL DEFICITS
dc.subjectSUBNATIONAL FINANCE
dc.subjectSUBNATIONAL FINANCES
dc.subjectSUBNATIONAL GOVERNMENTS
dc.subjectSUPERVISION OF BANKS
dc.subjectSUPPLY OF CREDIT
dc.subjectTAX
dc.subjectTAX BASES
dc.subjectTAX POLICY
dc.subjectTAXATION
dc.subjectTRANSPARENCY
dc.subjectUNFUNDED MANDATES
dc.titleLaws for Fiscal Responsibility for Subnational Discipline : International Experienceen
dspace.entity.typePublication
okr.crossref.titleLaws for fiscal responsibility for subnational discipline: International experience
okr.date.disclosure2011-03-01
okr.date.doiregistration2025-04-10T11:31:39.444267Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110311132517
okr.guid500141468148509851
okr.identifier.doi10.1596/1813-9450-5587
okr.identifier.externaldocumentum000158349_20110311132517
okr.identifier.internaldocumentum13897162
okr.identifier.reportWPS5587
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/03/11/000158349_20110311132517/Rendered/PDF/WPS5587.pdfen
okr.region.countryIndia
okr.region.countryArgentina
okr.region.countryPeru
okr.region.countryAustralia
okr.region.countryColombia
okr.region.countryBrazil
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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