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Expenditure Ceilings - A Survey

Expenditure Ceilings - A Survey by Gösta Ljungman
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This paper looks at the factors that have to be considered when designing an aggregate expenditure ceiling. It is argued that expenditure ceilings are effective in promoting fiscal discipline and sustainability, but that a number of trade-offs have to be made when setting up a fiscal framework that will survive in a politically charged environment. The paper illustrates the discussion with a case study of medium-term aggregate expenditure ceilings in three countries: Finland, the Netherlands and Sweden.
International Monetary Fund; December 2008
55 pages; ISBN 9781452731919
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Title: Expenditure Ceilings - A Survey
Author: Gösta Ljungman