OECD Journal on Budgeting

Frequency :
1681-2336 (online)
1608-7143 (print)
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The OECD journal on public sector budgeting, published three times per year. It draws on the best of the recent work of the OECD Working Party of Senior Budget Officials (SBO), as well as special contributions from finance ministries, and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector. Now published as a part of the OECD Journal subscription package.

Also available in: French

Latest Articles Hide / Show all Abstracts

Mark Number Date Article Volume and Issue Click to Access
  23 Dec 2013 The politics of fiscal austerity
Paul L. Posner, Matthew Sommerfeld

The sustainability of national economies will ultimately require a balance between near-term growth and longer-term fiscal consolidation. The question that is now being raised is whether such actions are politically sustainable. As the OECD area begins to emerge from the recession, another question is whether democratic countries can take pro-active leadership before a crisis forces their hand. This article examines the politics of fiscal consolidations in OECD countries in recent years, assessing whether and how leaders attempted to resolve the tensions between the fiscal and electoral imperatives.

JEL classification: H610, H620, H630, H680, P160
Keywords: Fiscal consolidation, sustainability of public finances, deficit, debt, Great Recession, financial crisis, political efficacy, democratic institutions, fiscal austerity, economic growth, role of political institutions, budget cuts, fiscal rules, political outcomes

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/the-politics-of-fiscal-austerity_budget-13-5k3w6lk42l33
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  23 Dec 2013 Budgeting levers, strategic agility and the use of performance budgeting in 2011/12
Ian Hawkesworth, Knut Klepsvik

Governments need to be able to quickly and flexibly reallocate resources from one priority to another. This article addresses this dimension of strategic agility in terms of managing the reallocation of resources in the public sector through the use of various budgetary tools. The focus is on recent fiscal consolidation efforts, the use of performance information and spending reviews, and automatic productivity cuts. This article draws on the OECD survey on performance and results that was conducted in 2011/12; the data are accurate as of November 2012.

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/budgeting-levers-strategic-agility-and-the-use-of-performance-budgeting-in-2011-12_budget-13-5k3ttg15bs31
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  23 Dec 2013 Capital budgeting and procurement practices
Philippe Burger, Ian Hawkesworth

Capital investment is a key function of government. However, for a number of reasons it has proven difficult for governments to ensure that capital investment represents value for money, is affordable, and is budgeted and accounted for in a prudent and transparent manner. This article discusses these challenges facing governments. Using the findings of a survey conducted among OECD countries and enhanced engagement countries in 2012, this article provides an overview of what governments are doing with respect to planning and prioritisation, procurement, construction, operation and management, monitoring and evaluation, and budgeting and accounting for capital projects. The article concludes with a number of recommendations for capital budgeting and procurement.

JEL classification: H400, H540, H570
Keywords: Capital investment, capital budgeting, capital projects, value for money, budgeting systems, accounting systems, transparency, procurement, public-private partnerships, PPPs, TIP, traditional infrastructure procurement

Volume 13 Issue 1 Click to Access: 
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/capital-budgeting-and-procurement-practices_budget-13-5k3w580lh1q7
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  23 Dec 2013 Short- and long-term forecasting by the Netherlands Bureau for Economic Policy Analysis (CPB)
Frits Bos, Coen Teulings

CPB forecasts for the next year and for the next period of government should be seen as well-motivated estimates based on all recent information, plausible assumptions and expected trends. These assumptions and trends are partly based on econometric estimation methods and insights from economic theory. However, the economy is a chaotic system in which small events can have major effects at short notice. Even when major uncertainties and risks are well understood, it remains impossible to indicate where and when a little spark will kindle a great fire or when the bubble in (e.g.) the housing or stock market will burst. The more distant the look into the future, the more uncertain are the forecasts. For such long-term analyses, the CPB employs scenarios, extended sensitivity analyses and identification of major political choices. Policy making is like sailing in fog. The regular set of CPB forecasts helps to look forward and to monitor whether a change of course is necessary. Despite fundamental uncertainty about the future, the CPB forecasts provide a good base for political discussions and decision making, like a coalition agreement, budget and wage rate negotiations and defining a long-term policy strategy. These forecasts inform Dutch society, reduce transaction costs in economic and political decision making, and foster consensus on economic and fiscal policy.

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/short-and-long-term-forecasting-by-the-netherlands-bureau-for-economic-policy-analysis-cpb_budget-13-5k409g58z133
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  23 Dec 2013 The reconciliation of primary accounting data for government entities and balances according to statistical measures
Giovanna Dabbicco

This article examines the scope and size of adjustments made by statisticians on source data from public accounting systems in EU member states to reach harmonised statistical measures. The article focuses on EDP Table 2 which shows the reconciliation from cash/cash modified or accrual public accounting to ESA 95, analyses the potential changes needed to EDP Table 2 if public accounting is on a full accrual/IPSAS basis, and proposes a possible way forward for better reconciling the relevant reporting balances. The analysis takes into account the study carried out by the European Commission report on the "Suitability of International Accounting Standards for the Public Sector (IPSAS) for the EU member states", and the differences between statistical reporting and IPSAS highlighted by IPSASB in the consultation paper on "IPSASs and Government Finance Statistics".

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/the-reconciliation-of-primary-accounting-data-for-government-entities-and-balances-according-to-statistical-measures_budget-13-5k409g5913xq
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  23 Dec 2013 Budget governance in Canada
Benoît Rigaud, Paul-Émile Arsenault

Canada is a federal country with 14 governments: federal, provincial and territorial. This article presents the results of a survey of institutional arrangements for budgeting that was conducted in 2010 among representatives of those governments. The pan-Canadian survey draws on an OECD questionnaire used in 2007 as part of the OECD International Budget Practices and Procedures Database. The analysis of sub-national government budget practices gives insights on fiscal federalism as well as the methodology for comparing.

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/budget-governance-in-canada_budget-13-5k409g59x7r8
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  10 July 2013 Selected budgeting issues in Chile
Ian Hawkesworth, Oscar Huerta Melchor, Marc Robinson

The Chilean government is exploring several important areas of public sector reform. This article discusses performance budgeting (including spending reviews, efficiency reviews, and the Chilean performance management system), mediumterm budgeting (especially the use of forward estimates and fiscal rules), and flexibility and efficiency in budget execution. Chile’s situation as of May 2012 was analysed in the light of OECD country best practices at the annual meeting of the OECD network on performance and results in November 2012, and the article makes several suggestions for reform.

JEL classification: H610
Keywords: Chile, budget structure, programme classification, formula-based performance budgeting, performance-based budgeting, evaluation, fiscal space, productivity savings mechanism, medium-term budgeting framework, MTBF, longterm projections

Volume 12 Issue 3 Click to Access: 
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/selected-budgeting-issues-in-chile_budget-12-5k44tpx5bl48
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