BUDGETING IN A TIME OF AUSTERITY: THE CASE OF THE ESTONIAN CENTRAL GOVERNMENT

Resulting from the global economic crisis, high budget deficits and debt burden characterise many economies looking for an exit strategy from current fiscal unbalances. The government of Estonia, having pursued a conservative fiscal policy for over a decade, reacted to the economic recession with radical budget adjustments, the latter constituting approximately 9% of gross domestic product in 2009. Consequently, Estonia took its chance and qualified for the euro in 2011. This study examines the behaviour of the Estonian central government and the basis of its budget decisions when planning drastic cost reductions through the theoretical lens of cutback management. The foremost results reveal that the crisis pushed the government to establish a different institutional framework that facilitated fast and effective decision‐making during the budget process. The savings proposals came from the Ministry of Finance; however, running a cash‐basis line‐item budgeting system in practice, the centre possessed only limited performance data for developing the proposals. Consequently, the long‐term impacts of the budget adjustments had not been assessed and are as yet unknown. A further conclusion is that the current budgeting framework should be revised and replaced step by step with a more advanced approach. Copyright © 2012 John Wiley & Sons, Ltd.     

THE INFLUENCE OF E‐GOVERNMENT ON ADMINISTRATIVE DISCRETION: THE CASE OF LOCAL GOVERNMENTS IN EGYPT

One important but often understudied area of research in public administration is the effect of e‐government on administrative discretion. This article examines e‐government factors that influence administrative discretion through a survey of local governments. The focus of this study is on Egyptian local governments, which are using e‐government to modernise public service delivery. Through a survey of administrative officials in these governments, this study found evidence that e‐government factors of collaboration and organisational change influenced administrative discretion. Other common factors noted in the literature such as size of the local government and demand by citizens for e‐government did not register an effect on administrative discretion. The results of this study imply that local governments should do more to enhance e‐government to reduce administrative discretion, especially in the area of increasing collaboration. Copyright © 2011 John Wiley & Sons, Ltd.