Fiscal institutions of Brazilian municipal borrowing

In an effort to understand subnational borrowing, this article explores how three Brazilian institutions—the 1988 Constitution which mandates revenue and expenditure assignments among the levels of the federation; the national Law of Fiscal Responsibility, which imposes expenditure and debt limitations on all levels and branches of government; and various borrowing arrangements—affect the municipal borrowing environment. These institutions are examined in light of de Mello's (2001) policy recommendations for strengthening efficiency and fiscal discipline in subnational borrowing. The institutions of Brazilian borrowing were found to have some of de Mello's recommendations, with the new Constitution and the Law of Fiscal Responsibility making progress towards increased fiscal responsibility, but the current borrowing arrangements serving to maintain a controlled system that is not conducive to responsible municipal borrowing. Several recommendations are made to improve the borrowing environment and foster fiscal discipline and efficiency Copyright © 2008 John Wiley & Sons, Ltd.     

The Impact of the Fiscal Crisis on Public Administration Reforms: Comparison of 14 European Countries

Abstract

This study aims to empirically test a widespread assumption that fiscal crises instigate administrative reforms. The empirical analysis relies upon an international comparative study of the responses of 14 European governments to the fiscal crisis of 2008–2013. It is found that fiscal crisis and public administration reforms are not necessarily closely connected. In the majority of cases, the fiscal crisis did not have an instant effect of triggering structural public administration reforms or substantial shifts in existing reform trajectories. The crisis intensified the pressure to reform public administration to some extent, but the European governments’ responses predominantly followed a combination of straightforward cutbacks and incremental change. More substantial reforms were carried out in countries most severely hit by the crisis and/or where administrative reforms were conditioned by international financial assistance.     

Defining Asia Capabilities for Australia's Public Service

Twenty‐three years ago, questions posed in this journal asked whether and how the Australian public service was prepared to engage effectively in Asia. More recent meta‐analyses of public policy scholarship suggest that Western policy scholars and administrators continue to pay limited attention to Asian policymaking, despite the rise of Asia in the 21st century. This article contributes a research‐derived Asia capabilities framework for Australia's public service, distilled from a qualitative study with public administration leaders at Commonwealth, state, and local government levels. It taps scholarly literature in ‘cultural intelligence’, global leadership competencies, and training to provide a robust conceptual underpinning for the framework. The framework defines the knowledge, skills, capabilities, and experiences vital for Australia's public service to engage effectively with the region in a rapidly changing policy environment.     

Fiscal Policy Composition,Public Debt,and Economic Activity

This paper uses a dynamic general equilibrium model i) toinvestigate how changes to different spending and revenue items of the budgetaffect economic activity and public finance; and ii) to evaluate thewelfare costs of alternative fiscal policy maneuvers. The paper shows that,unlike an increase in government purchases of final goods, an increasein public employment and transfers can have a contractionary effect onthe economy in the same way as a rise in tax rates. It also suggests thatfiscal adjustments implemented by cutting spending items increasehouseholds' welfare and are more effective in reducing the primary deficitand public debt than are increases in tax rates.     

The Impact of Energy Asset Privatisation on State Government Debt Management and Service Provision in Victoria and New South Wales

The purpose of this article is to look at the impact of the privatisation of the electricity and gas industries in the state of Victoria on the level of state government debt and subsequent ability of the state to deliver public services in the areas of health, education and law and order. In order to undertake this, a comparison is made with the state of New South Wales (NSW), where the privatisation of the electricity industry was often debated during the 1990s and 2000s, but never undertaken.     

Australia's Political Institutions and the Corruption of Public Opinion1

This article explores structural causes for the decline in the quality of Australia's political and policy conversations. Three are nominated. The first concerns the changing role of the major party organisations. These no longer contribute to agenda setting; they are no longer forums for activist and interest mobilisation; they no longer mobilise and cue a mass base. The second structural change concerns the rise in the role of the media. This is now the primary bridge between the formal political system and the surrounding society, a role for which it is singularly ill‐equipped. The third change concerns the misalignment between the formal political system and Australian society. The formal system was formed in the early twentieth century when Australian society was broadly divided by class allegiance. Those days are long gone. Class has decomposed. A variety of new concerns differentiate and pluralise social attitudes. Possible remedies are then discussed.     

Empirical examination of public debt sustainability in African economies: A panel data analysis

This study intends to investigate public debt sustainability across 29 Sub-Sahara African (SSA) economies, employing various econometric specifications, for the sampled years 1996–2020. The study employs Bohn's (Are stationarity and cointegration restrictions really necessary for the intertemporal budget constraint? Journal of monetary Economics, 54(7), pp.1837–1847.) framework of sustainability as the baseline model to assess public debt sustainability across the sampled Sub-Sahara African economies. As additional tests of public debt sustainability in order to support the baseline findings, the study also employs panel unit root and timeseries unit tests. The baseline findings from the OLS, panel quantile and instrumental panel quantile regressions show that public debt is sustainable across the panel of SSA economies. The positive and statistically significant response of primary balance under the Bohn's framework of sustainability manifest that the intertemporal budget constraint is not violated in the sampled economies. The consistency in the estimates under the OLS, panel quantile and instrumental panel quantile regressions also show that the estimates are robust throughout the estimation process. Also, utilizing the panel unit root test for public debt sustainability, the findings show that public debt is stationary over the sampled years which implies that intertemporal budget constraint holds and that public debt is sustainable across the sampled SSA economies. However, the timeseries analysis indicate that although majority of the SSA economies have sustainable public debt ratios, four countries namely Uganda, Sudan, Togo and Cote d'Ivoire have unsustainable public debt ratios. The study has important policy implications in terms of prudent public debt management and fiscal management for the sampled SSA economies.     

Fiscal rules,fiscal outcomes and financial market behaviour

Since the outbreak of the eurozone's sovereign debt crisis, a range of fiscal policy measures have been adopted at the European Union (EU) and national levels that have given rise to claims of a significant reinforcement of fiscal policy constraint. Given the prominence and reinvigorated political appeal of fiscal rules in the EU and beyond, it is disconcerting how little we actually know about the link between fiscal rules, budgetary outcomes and market behaviour. In this research note, the aim is to take stock of the existing literature and challenge its contribution to the current policy debate on the merits of fiscal rules. Specifically it will focus on problems linked to endogeneity, measurements and contextuality.     

Debt administration in Small Island‐States

Public debt management is an infrequent focus of public administration studies. Yet without appropriate debt management, administrators have few financial resources for public service provision. Island‐state administrators face an enhanced service provision challenge. The peculiarity of island‐state economies, the unpredictability of exogenous events and the state's endogenous choices increase debt administration's importance. Via its focus on debt management office location and the administrative constraints posed by brain drain, transparency and regionalization, this paper goes beyond typical debt management studies to engage debt administration spaces. The result is a framework for studies of debt administration in Small Island‐States.     

Organization and Reporting of Public Financial Accounts: Insights and Policy Implications from the Singapore Budget

This paper analyses the Singapore government budget's organization and reporting structure, and draws lessons and policy implications for improving public financial management practices. The paper finds that Singapore's fiscal marksmanship record has been poor with consistent underestimates of revenue and overestimates of expenditure. Second, subtle divergences from international reporting standards limit the information available and constrain the budget's analytical usefulness in international comparisons. Third, current reporting conventions of the budget fail to provide an adequate representation of the government's fiscal position. Fourth, revised estimates of budgetary balances in line with international reporting standards show a considerable increase in the fiscal space available. The policy implications of these findings are discussed, as well as some reporting changes which can help improve the fiscal marksmanship record, increase public sector transparency and accountability, and facilitate better quality discourse among all stakeholders on public financial management.     

Reexamining the Relationship Between Fiscal Stress and Outsourcing

The determinants of outsourcing in local government are widely studied from a variety of frameworks. One concept consistently used to explain local government outsourcing is fiscal condition, with many noting that outsourcing is more likely when a local government’s fiscal condition declines into fiscal stress. Despite the ubiquity of this expectation in the outsourcing literature, several articles reviewed suggest that the findings for this relationship remain uncertain. As a result, the research presented in this article sought to examine and extend what is known about the relationship between fiscal stress and outsourcing in U.S. municipalities. The research includes previous measures of fiscal stress and adds new measures. In addition, it tries to overcome the limited theoretical testing of the relationship between fiscal stress and outsourcing by examining both direct and indirect effects of fiscal stress on outsourcing. It finds that municipalities in the United States that are experiencing fiscal stress are more likely to engage in outsourcing, particularly municipalities that are experiencing fiscal stress and have a positive evaluation of the external market to provide services.     

The Howard Government: The Extent to which Public Attitudes Influenced Australia's Federal Policy Mix

This article focuses on the interaction between government policy and public attitudes in order to explain why the Howard government was reasonably pragmatic given that it maintained enough popular support to win four successive federal elections from 1996, and why such a relationship is crucial to evaluating policy trends in Australia's liberal democracy in terms of understanding both policy possibilities and limitations no matter how flawed or divisive certain policies may appear to be.     

Performance Management in Australia's Public Mental Health Service: A State Based Perspective

This article investigates the implementation of key performance indicators (KPIs) in Western Australia's public mental health system. A nationally agreed performance measurement framework forms part of the much needed reform now taking place within Australia. However, progress in the effective monitoring and reporting of KPIs is slow in most states, including Western Australia. The authors report on the results of a selective case study involving semi‐structured interviews with mental health administrators and offer a more nuanced insight into the intricacies and difficulties involved in performance measurement reform. The principal finding is that effective performance measurement and reporting can be internally problematic, particularly within a fragmented and networked system. This tends to give rise to a conformance‐only approach to performance measurement.     

Debt intolerance and the 90 per cent debt threshold: two impossibility theorems

Abstract

Two propositions underpin the retreat from post-crisis fiscal expansion instituted by several G7 governments in the summer of 2010. One is that the threat of debt intolerance is general: the reasoning is that the sharp rise in government debt levels caused by post-crisis fiscal expansion will force investors to abandon government bonds in favour of some other asset class. The other proposition is that there is a one-size debt threshold: the reasoning is that no government, those of the G7 countries included, can escape the serious consequences of debt intolerance and the threat of exit should its debt to GDP ratio reach 90 per cent. This paper argues that neither of these propositions can have credibility at a time of continuing global economic slowdown and consequent contraction in the global supplies of investable assets. At such a time investors cannot possibly hold up the threat of intolerance to core economy governments because they have no choice but to store substantial portions of their wealth in the latter's bonds, a fact which in turn means that the debt thresholds for core economy governments cannot possibly be the same as the average for other governments.     

Public Financial Management Reform in South African Provincial Basic Education Departments

Since the transition to democracy in 1994, the South African government has engaged in a sustained programme of public financial management (PFM) reform across the national, provincial and local spheres of government. This study evaluates the progress of the nine provincial education departments (PEDs) in implementing the Public Finance Management Act of 1999 and explores the factors that facilitated or impeded reform. A PFM progress (PFMP) index is constructed to track each PED's performance from 1997/1998 to 2013/2014 and then used to benchmark its progress over time and relative to the education sector as a whole. The indicators comprising the PFMP index assess key PFM functions (budgeting, accounting, financial auditing and audits of performance information), financial leadership and the effectiveness of governance institutions such as audit committees. While there has been considerable progress in PFM, distinct differences in the quality and effectiveness of PFM practices across the nine PEDs remain. Stable top administrative leadership, availability of PFM skills, varying degrees of accountability and departmental capacity to establish PFM systems that conform to new accounting standards drive variances in reform outcomes. Copyright © 2016 John Wiley & Sons, Ltd.     

Australia's Indicator-Based Sustainability Assessments and Public Policy

Operationalising sustainability has proven difficult because the concept is ambiguous and fraught with contradictions. In response, sustainability indicator systems to characterise and measure sustainable development have been developed globally. The focus of this article is on how indicators function as an instrument of policy to enhance achievement of environmental and sustainability policy in Australia at national scale. In theory, by integrating information from the environmental, social and economic domains and then feeding knowledge to a wide range of policy sectors, sustainability indicator systems may facilitate cross-agency and -portfolio connectivity. Key characteristics of the various sustainability indicator systems developed to inform policy at the national level are described, noting the diverse approaches to indicator development in Australia. The structural relevance of indicator systems to the mechanisms of policy and institutions in Australia is discussed, and corresponding issues of institutional fit are analysed .     

Fiscal consolidation under electoral risk

The European debt crisis has uncovered serious tension between democratic politics and market pressure in contemporary democracies. This tension arises when governments implement unpopular fiscal consolidation packages in order to raise their macroeconomic credibility among financial investors. Nonetheless, the dominant view in current research is that governments should not find it difficult to balance demands from voters and investors because the economic and political costs of fiscal consolidations are low. This would leave governments with sufficient room to promote fiscal consolidation according to their ideological agenda. This article re‐examines this proposition by studying how the risk of governments to be replaced in office affects the probability and timing of fiscal consolidation policies. The results show that governments associate significant electoral risk with consolidations because electorally vulnerable governments strategically avoid consolidations towards the end of the legislative term in order to minimise electoral punishment. Specifically, the predicted probability of consolidation decreases from 40 per cent after an election to 13 per cent towards the end of the term when the government's margin of victory is small. When the electoral margin is large, the probability of consolidation is roughly stable at around 35 per cent. Electoral concerns are the most important political determinant of consolidations, leaving only a minor role for ideological concerns. Governments, hence, find it more difficult to reconcile political and economic pressures on fiscal policy than previous, influential research implies. The results suggest that existing studies under‐estimate the electoral risk associated with consolidations because they ignore the strategic behaviour that is established in this analysis.     

Do citizens care about government debt? Evidence from survey experiments on budgetary priorities

Ever since the Great Recession, public debt has become politicised. Some research suggests that citizens are fiscally conservative, while other research shows that they punish governments for implementing fiscal consolidation. This begs the question of whether and how much citizens care about debt. We argue that debt is not a priority for citizens because reducing it involves spending and tax trade-offs. Using a split-sample experiment and a conjoint experiment in four European countries, we show that fiscal consolidation at the cost of spending cuts or taxes hikes is less popular than commonly assumed. Revenue-based consolidation is especially unpopular, but expenditure-based consolidation is also contested. Moreover, the public has clear fiscal policy priorities: People do not favour lower debt and taxes, but they support higher progressive taxes to pay for more government spending. The article furthers our understanding of public opinion on fiscal policies and the likely political consequences of austerity.     

公共需求管理与公共服务标准化

公共服务标准化建设是服务型政府建设的一个重要发展阶段,它是与公共需求的变化相适应的。本文把人的需要分为生存型需要、安全型需要、享受型需要和发展型需要。中国目前公共需求正从生存型向安全型、享受型、发展型转变,政府公共服务精细化、标准化是这一需要变化的必然要求。政府应通过了解需求、整合需求和引导需求,推进公共服务标准化建设,提升公共服务水平。