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Fiscal councils’ impact on promoting transparency and accountability in public finance management

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  • Sanja Bach

    (Ministry of Finance of the Republic of Croatia, Zagreb, Croatia)

Abstract

This paper addresses two main questions: (1) how far do the activities of fiscal councils in the EU countries help promote transparency and accountability in the management of public finances and (2) how could fiscal councils enhance the impact of those activities? The analysis is based on a questionnaire collected in 2016 from fiscal councils in 18 EU countries. The questionnaire looked at how the councils themselves assessed their impact on the management of public finances, and how they communicated their findings to the wider public. The councils see some benefits of their work; and their monitoring of adherence to fiscal rules and legislative regulation, as well as their warnings about excessive government spending, seem to get noticed in the media. This activity informs the public, and may in turn influence politicians’ ratings, thereby helping to contribute to greater accountability in the management of public finances. The paper consequently argues that fiscal councils may promote fiscal transparency and accountability and proposes several ways to enhance the effectiveness of their influence on media.

Suggested Citation

  • Sanja Bach, 2020. "Fiscal councils’ impact on promoting transparency and accountability in public finance management," Public Sector Economics, Institute of Public Finance, vol. 44(3), pages 355-384.
    • Handle: RePEc:ipf:psejou:v:44:y:2020:i:3:p:355-384
    DOI: 10.3326/pse.44.3.4
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    References listed on IDEAS

    as
    1. Lars Calmfors & Simon Wren-Lewis, 2011. "What should fiscal councils do? [Fiscal policy when monetary policy is tied to the mast]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(68), pages 649-695.
    2. Schuknecht, Ludger, 2004. "EU fiscal rules: issues and lessons from political economy," Working Paper Series 421, European Central Bank.
    3. Allen Schick, 2013. "Lessons from the crisis," OECD Journal on Budgeting, OECD Publishing, vol. 12(3), pages 1-29.
    4. Mr. Luc Eyraud & Mr. Tao Wu, 2015. "Playing by the Rules: Reforming Fiscal Governance in Europe," IMF Working Papers 2015/067, International Monetary Fund.
    5. Mr. George Kopits & Mr. J. D. Craig, 1998. "Transparency in Government Operations," IMF Occasional Papers 1998/001, International Monetary Fund.
    6. Allen Schick, 2010. "Post-Crisis Fiscal Rules: Stabilising Public Finance while Responding to Economic Aftershocks," OECD Journal on Budgeting, OECD Publishing, vol. 10(2), pages 1-18.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fiscal councils; fiscal transparency; fiscal accountability; fiscal policy communication; media influence;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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