Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience

This paper discusses fiscal responsibility laws in Latin America, with special attention to their provisions for fiscal discipline by subnational governments. It discusses why and when such laws might be useful-to help resolve the coordination prob...

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Main Author:	Webb, Steven B.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ACCOUNTABILITY AUTHORITY AUTHORIZATION AUTONOMY BANK REGULATION BANKING SECTOR BORROWING COSTS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CENTRAL GOVERNMENT CENTRALIZATION CONGRESSIONAL OVERSIGHT CONSENSUS CONSOLIDATION CONSTITUTION CONSTITUTIONS CREDIT RATINGS CREDITWORTHINESS DEBT DEBT MANAGEMENT DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECONCENTRATION DECREES DEMOCRACY DEVOLUTION DISTRICTS DOMESTIC BORROWING EXECUTION EXPENDITURE FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL CRISIS FISCAL DEFICIT FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL PROBLEMS FISCAL RESOURCES FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY GOVERNMENT BORROWING INFLATION INSTITUTIONAL ARRANGEMENTS INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LAWS LEGISLATION LEGISLATORS LEGISLATURE LEGISLATURES LEGITIMACY LEVELS OF GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MINISTRY OF FINANCE MORAL HAZARD MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS NATIONAL LEVEL PENALTIES PENSIONS POLITICAL DECENTRALIZATION POLITICAL INSTITUTIONS POLITICIANS POPULISM PRESIDENTS PRIVATIZATION PRIVATIZATION OF STATE PROVISIONING PROVISIONS PUBLIC FINANCES PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SPENDING RATING AGENCIES REVENUE SHARING REVENUE TRANSFERS SALES TAXES SAVINGS SENATE STATE ENTERPRISES STATE GOVERNMENT STATE OWNED BANKS SUBNATIONAL DEFICITS SUBNATIONAL FINANCES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX TRANSPARENCY VETO FISCAL SYSTEMS CREDIT MARKET DEBT MARKETS LEGISLATION ENVIRONMENT POLITICAL SYSTEMS BUDGET PROCESS
Online Access:	http://documents.worldbank.org/curated/en/2004/05/4966775/fiscal-responsibility-laws-subnational-discipline-latin-american-experience http://hdl.handle.net/10986/14034

id	okr-10986-14034
recordtype	oai_dc
spelling	okr-10986-140342021-04-23T14:03:21Z Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience Webb, Steven B. ACCOUNTABILITY AUTHORITY AUTHORIZATION AUTONOMY BANK REGULATION BANKING SECTOR BORROWING COSTS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CENTRAL GOVERNMENT CENTRALIZATION CONGRESSIONAL OVERSIGHT CONSENSUS CONSOLIDATION CONSTITUTION CONSTITUTIONS CREDIT RATINGS CREDITWORTHINESS DEBT DEBT MANAGEMENT DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECONCENTRATION DECREES DEMOCRACY DEVOLUTION DISTRICTS DOMESTIC BORROWING EXECUTION EXPENDITURE FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL CRISIS FISCAL DEFICIT FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL PROBLEMS FISCAL RESOURCES FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY GOVERNMENT BORROWING INFLATION INSTITUTIONAL ARRANGEMENTS INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LAWS LEGISLATION LEGISLATORS LEGISLATURE LEGISLATURES LEGITIMACY LEVELS OF GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MINISTRY OF FINANCE MORAL HAZARD MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS NATIONAL LEVEL PENALTIES PENSIONS POLITICAL DECENTRALIZATION POLITICAL INSTITUTIONS POLITICIANS POPULISM PRESIDENTS PRIVATIZATION PRIVATIZATION OF STATE PROVISIONING PROVISIONS PUBLIC FINANCES PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SPENDING RATING AGENCIES REVENUE SHARING REVENUE TRANSFERS SALES TAXES SAVINGS SENATE STATE ENTERPRISES STATE GOVERNMENT STATE OWNED BANKS SUBNATIONAL DEFICITS SUBNATIONAL FINANCES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX TRANSPARENCY VETO FISCAL SYSTEMS CREDIT MARKET FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY DEBT MARKETS DEBT MANAGEMENT LEGISLATION ENVIRONMENT POLITICAL SYSTEMS BUDGET PROCESS This paper discusses fiscal responsibility laws in Latin America, with special attention to their provisions for fiscal discipline by subnational governments. It discusses why and when such laws might be useful-to help resolve the coordination problem in getting diverse governments to avoid overusing the common national credit market and to help individual governments make a time-consistent commitment for fiscal prudence. It examines the cases of Brazil, Colombia, Peru, and Argentina, as well as the case of Mexico where other types of laws and regulations aim to achieve the same objectives of solidifying incentives for fiscal discipline at all levels of government. Fiscal responsibility laws are found to be useful in some cases, although the experience is not long enough to be certain, but they are clearly not necessary in every case, nor always sufficient to assure fiscal stability. 2013-06-19T20:32:03Z 2013-06-19T20:32:03Z 2004-05 http://documents.worldbank.org/curated/en/2004/05/4966775/fiscal-responsibility-laws-subnational-discipline-latin-american-experience http://hdl.handle.net/10986/14034 English en_US Policy Research Working Paper;No.3309 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTABILITY AUTHORITY AUTHORIZATION AUTONOMY BANK REGULATION BANKING SECTOR BORROWING COSTS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CENTRAL GOVERNMENT CENTRALIZATION CONGRESSIONAL OVERSIGHT CONSENSUS CONSOLIDATION CONSTITUTION CONSTITUTIONS CREDIT RATINGS CREDITWORTHINESS DEBT DEBT MANAGEMENT DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECONCENTRATION DECREES DEMOCRACY DEVOLUTION DISTRICTS DOMESTIC BORROWING EXECUTION EXPENDITURE FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL CRISIS FISCAL DEFICIT FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL PROBLEMS FISCAL RESOURCES FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY GOVERNMENT BORROWING INFLATION INSTITUTIONAL ARRANGEMENTS INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LAWS LEGISLATION LEGISLATORS LEGISLATURE LEGISLATURES LEGITIMACY LEVELS OF GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MINISTRY OF FINANCE MORAL HAZARD MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS NATIONAL LEVEL PENALTIES PENSIONS POLITICAL DECENTRALIZATION POLITICAL INSTITUTIONS POLITICIANS POPULISM PRESIDENTS PRIVATIZATION PRIVATIZATION OF STATE PROVISIONING PROVISIONS PUBLIC FINANCES PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SPENDING RATING AGENCIES REVENUE SHARING REVENUE TRANSFERS SALES TAXES SAVINGS SENATE STATE ENTERPRISES STATE GOVERNMENT STATE OWNED BANKS SUBNATIONAL DEFICITS SUBNATIONAL FINANCES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX TRANSPARENCY VETO FISCAL SYSTEMS CREDIT MARKET FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY DEBT MARKETS DEBT MANAGEMENT LEGISLATION ENVIRONMENT POLITICAL SYSTEMS BUDGET PROCESS
spellingShingle	ACCOUNTABILITY AUTHORITY AUTHORIZATION AUTONOMY BANK REGULATION BANKING SECTOR BORROWING COSTS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CENTRAL GOVERNMENT CENTRALIZATION CONGRESSIONAL OVERSIGHT CONSENSUS CONSOLIDATION CONSTITUTION CONSTITUTIONS CREDIT RATINGS CREDITWORTHINESS DEBT DEBT MANAGEMENT DEBT RELIEF DEBT SERVICE DECENTRALIZATION DECONCENTRATION DECREES DEMOCRACY DEVOLUTION DISTRICTS DOMESTIC BORROWING EXECUTION EXPENDITURE FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL CRISIS FISCAL DEFICIT FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL PROBLEMS FISCAL RESOURCES FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY GOVERNMENT BORROWING INFLATION INSTITUTIONAL ARRANGEMENTS INTERGOVERNMENTAL RELATIONS INTERGOVERNMENTAL TRANSFERS LAWS LEGISLATION LEGISLATORS LEGISLATURE LEGISLATURES LEGITIMACY LEVELS OF GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MINISTRY OF FINANCE MORAL HAZARD MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS NATIONAL LEVEL PENALTIES PENSIONS POLITICAL DECENTRALIZATION POLITICAL INSTITUTIONS POLITICIANS POPULISM PRESIDENTS PRIVATIZATION PRIVATIZATION OF STATE PROVISIONING PROVISIONS PUBLIC FINANCES PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SPENDING RATING AGENCIES REVENUE SHARING REVENUE TRANSFERS SALES TAXES SAVINGS SENATE STATE ENTERPRISES STATE GOVERNMENT STATE OWNED BANKS SUBNATIONAL DEFICITS SUBNATIONAL FINANCES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX TRANSPARENCY VETO FISCAL SYSTEMS CREDIT MARKET FISCAL RESPONSIBILITY FISCAL SUSTAINABILITY DEBT MARKETS DEBT MANAGEMENT LEGISLATION ENVIRONMENT POLITICAL SYSTEMS BUDGET PROCESS Webb, Steven B. Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper;No.3309
description	This paper discusses fiscal responsibility laws in Latin America, with special attention to their provisions for fiscal discipline by subnational governments. It discusses why and when such laws might be useful-to help resolve the coordination problem in getting diverse governments to avoid overusing the common national credit market and to help individual governments make a time-consistent commitment for fiscal prudence. It examines the cases of Brazil, Colombia, Peru, and Argentina, as well as the case of Mexico where other types of laws and regulations aim to achieve the same objectives of solidifying incentives for fiscal discipline at all levels of government. Fiscal responsibility laws are found to be useful in some cases, although the experience is not long enough to be certain, but they are clearly not necessary in every case, nor always sufficient to assure fiscal stability.
format	Publications & Research :: Policy Research Working Paper
author	Webb, Steven B.
author_facet	Webb, Steven B.
author_sort	Webb, Steven B.
title	Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
title_short	Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
title_full	Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
title_fullStr	Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
title_full_unstemmed	Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience
title_sort	fiscal responsibility laws for subnational discipline: the latin american experience
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://documents.worldbank.org/curated/en/2004/05/4966775/fiscal-responsibility-laws-subnational-discipline-latin-american-experience http://hdl.handle.net/10986/14034
_version_	1764430390592798720

Fiscal Responsibility Laws for Subnational Discipline: The Latin American Experience

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