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Sustainable Budget and the Sustainability Appearing in the Budget

Author

Listed:
  • László Domokos

    (PhD, honorary university professor, President of the State Audit Office of Hungary)

  • Gyula Pulay

    (PhD, associate professor, head of department, University of Miskolc, Director of Audit, State Audit Office of Hungary)

Abstract

Fiscal sustainability has become one of the most important requirements of fiscal policy over the past two to three decades. Hungary’s Fundamental Law stipulates that Hungary enforces the principle of sustainable budget management. In international practice, fiscal sustainability is often identified with preserving the solvency of the state and the sustainable financing of public debt. The risks related to the fulfilment of the constitutional requirement to reduce public indebtedness are also regularly assessed by the State Audit Office, for which it has developed its own risk analysis method. The authors of the article define fiscal sustainability as a series of budgets that provide coverage for the public goods needs of present generations while increasing the capacity and opportunity of future generations to meet their own future needs. Based on this, and building on the resolution of the National Assembly and international good practices, they present how the coverage of Sustainable Development Goals can be integrated into the respective budgets in a transparent and accountable way.

Suggested Citation

  • László Domokos & Gyula Pulay, 2020. "Sustainable Budget and the Sustainability Appearing in the Budget," Public Finance Quarterly, State Audit Office of Hungary, vol. 65(6), pages 25-56.
  • Handle: RePEc:pfq:journl:v:65:y:2020:i:6:p:25-56
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    References listed on IDEAS

    as
    1. Csaba Tóth G., 2014. "The Forecasting Capacity of Indicators Measuring Budget Sustainability," Public Finance Quarterly, State Audit Office of Hungary, vol. 59(4), pages 511-528.
    2. Mr. Enzo Croce & Mr. V. Hugo Juan-Ramon, 2003. "Assessing Fiscal Sustainability: A Cross-Country Comparison," IMF Working Papers 2003/145, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gusztáv Báger & Bianka Parragh, 2020. "The Coronavirus Crisis, Sustainable Development and the Incentive State Model," Public Finance Quarterly, State Audit Office of Hungary, vol. 65(6), pages 86-115.

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    More about this item

    Keywords

    UN Sustainable Development Goals; sustainable development; fiscal sustainability; public debt sustainability; fiscal risk assessment;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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