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The Role of Budget Institutions

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Reallocation is about major adjustments of public expenditure away from its current patterns. In recent years, reallocation has become increasingly important as a means to finance new needs in the sphere of internal and external security, integration of immigrants, education, health and pensions, especially in countries where economic growth has been weak. This report examines how reallocation is impacted by four institutions of the budget process: 

·        medium-term expenditure frameworks,

·        rules of budgetary discipline,

·        the role of the minister of finance,

·        programme review.

Reallocation: The Role of Budget Institutions reviews and discusses the record on reallocation in 12 OECD countries: Canada, the Czech Republic, France, Germany, Italy, Mexico, the Netherlands, New Zealand, Spain, Sweden, the United Kingdom and the United States. The report develops a microeconomic classification of public expenditures.

Organisation for Economic Co-operation and Development; January 2005
148 pages; ISBN 9789264015760
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