This book expands on issues like fiscal sustainability, state enterprises and the variety of subsidies, with a multi-country focus. Drawing examples from numerous countries, it presents issues in contemporary finance and especially fiscal policy that can benefit researchers and civil servants from both developed, as well as developing worlds and emerging market economies.
Written in a simple and accessible manner, this book will be of interest to civil servants and practitioners. It also serves as a reference source for students and academics, and can be used as a textbook for advanced courses on public finance.
Contents:The Role of Government in a Modern Market Economy:The Economic Justification for Government ActivitySpecific Activities for GovernmentsSummaryHow Fiscal Policy Affects the National Economy:Fiscal Policy: An IntroductionFiscal Policy and Aggregate DemandFiscal Policy and the Supply SideFiscal Policy and the Balance of PaymentsThe Interaction between Fiscal and Monetary PolicyUsing Fiscal Policy for Macroeconomic ManagementLimitations on Fiscal PolicySummaryHow the National Economy Affects the Fiscal Sector:Business Cycles and the Government BudgetHow the Stage of Economic Development and Other Factors Affect Fiscal PolicyIs Fiscal Policy Pro- or Counter-Cyclical?Making Policy More Counter-CyclicalSummaryFiscal Accounts, Analysis, and Forecasting:Coverage of the Fiscal SectorFiscal AccountsFiscal Analysis: Key IndicatorsFiscal ForecastingSummaryFiscal (Public Debt) Sustainability:Assessing Sustainability: Basic ConsiderationsAnalysis of Fiscal SolvencySustainability: Going Beyond the BasicsFiscal Sustainability and the Financial Crisis of 2007–09SummaryRevenue Policy:Selected Data on Government RevenuePurposes of TaxationPrinciples for an Effective Revenue SystemMajor Revenue SourcesOther Tax Policy IssuesTax AdministrationSummaryExpenditure Policy and Reform:Rationales for Government Expenditure: A Brief ReviewExpenditure Levels and Composition — An International ComparisonMain Categories of Government ExpenditureIssues Affecting Specific Categories of ExpenditureSpecial Expenditure IssuesTools for Controlling ExpenditureSummaryState Enterprises:Justifications for State EnterprisesEconomic Implications of State OwnershipReforming State EnterprisesPrivatizationSummaryFiscal Aspects of Responding to Financial Crisis and Bank Restructuring:Background: What Triggers Bank Failures and the Need for RestructuringJustification for Public Sector Response to Bank Failure and Financial CrisisPolicy Options to Support Failing BanksSummaryFiscal Federalism and Decentralization:Assigning Expenditure Responsibilities to Different Levels of Government — General PrinciplesAssigning Revenue Sources to Different Levels of Government — General PrinciplesIntergovernmental Transfers in Federal SystemsAchieving Fiscal Control in Federal SystemsFiscal Federalism in PracticeSummaryFiscal Policy for Promoting Growth and Alleviating Poverty:Using Fiscal Policy to Promote GrowthUsing Fiscal Policy to Alleviate Poverty and UnemploymentSummaryFiscal Policy and Aging: Public Pension Programs:Justifications for Public Pension ProgramsTypes of Public Pension ProgramsAdvantages and RisksNational Pension Programs: Illustrative ExamplesPopulation Aging and the Outlook for Public Pension ProgramsReforming Public Pension Programs: A General ApproachSummaryFiscal Policy and Health Care:Basic Characteristics of Health CareThe Role of Government in Health CareTrends in Health ExpendituresSingapore: Avoiding the Rise in Health Care Expenditures as a Percentage of GDPStrategies for Containing Fiscal Costs for Health CareSummaryFiscal Rules:Kinds of Fiscal Rules and Their ImplicationsEffectiveness of Fiscal RulesFiscal Rules as Part of the Framework for Fiscal PolicymakingDeveloping Effective Fiscal RulesRecent Experience with Fiscal RulesSummaryFiscal Reforms:Goals of Fiscal Reform ProgramsPotential Revenue ReformsPotential Expenditure ReformsPotential Reforms for State EnterprisesPotential Reforms in Tax Administration and Public Expenditure ManagementAchieving Fiscal ReformCase Studies of Fiscal ReformConclusionsReadership: Students, researchers and academics studying or teaching public finance and fiscal policy; civil servants; practitioners.