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Enhancing the Effectiveness of Public Spending in Switzerland

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Author Info
Isabelle Joumard
Claude Giorno ()

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Abstract

Switzerland is a highly decentralised country with large spending and revenue-raising powers devolved to cantons and municipalities. The federal system, in combination with an extensive use of direct democracy, has contributed to keep public spending at a relatively low level in international comparison. It has also made it possible to tailor the provision of public services to citizens’ needs and willingness to pay and to experiment with a variety of policies. At the same time, several tensions have emerged and effective control of spending deteriorated during the 1990s. After identifying these tensions, this paper reviews recent policy initiatives and proposes options for further enhancing public spending effectiveness. These entail implementing a new fiscal rule which will allow the free play of the automatic stabilisers at the federal level and ensuring its consistency with other government levels’ behaviour; increasing transparency in public spending costs and ...

Améliorer l’efficacité des dépenses publiques en Suisse

En Suisse, pays très décentralisé, d’importants pouvoirs sont dévolus aux cantons et aux communes en matière de dépenses et de recettes. Le système fédéral conjugué à un large usage de la démocratie directe a permis de maintenir des dépenses publiques à un niveau relativement faible comparativement aux autres pays. Il a également permis d’adapter la fourniture des services publics en fonction des besoins et de la disposition des citoyens à payer, et d’expérimenter diverses politiques. Dans le même temps, un certain nombre de tensions sont apparues et le contrôle effectif des dépenses s’est détérioré au cours des années 90. Après avoir identifié ces tensions, cet article passe en revue les initiatives récentes de politiques économiques et propose des options visant à améliorer l’efficacité des dépenses publiques. Celles-ci comprennent la mise en œuvre d’une nouvelle règle budgétaire permettant de laisser librement jouer les stabilisateurs automatiques au niveau fédéral tout en ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 332.

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Date of creation: 05 Jul 2002
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Handle: RePEc:oec:ecoaaa:332-en

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Keywords: Switzerland Suisse dépenses publiques fiscal equalisation fiscal federalism fiscal rules intergovernmental grants new public management public spending péréquation financière fédéralisme fiscal règles budgétaires nouvelle gestion publique transferts intergouvernementaux

Find related papers by JEL classification:
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H1 - Public Economics - - Structure and Scope of Government
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H4 - Public Economics - - Publicly Provided Goods
H5 - Public Economics - - National Government Expenditures and Related Policies
H6 - Public Economics - - National Budget, Deficit, and Debt
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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