The political budget cycle (PBC) literature argues that governments expand deficits in election years. However, what … happens when an economic downturn is expected? Will the government allow the deficit to expand even further, or will it resort … opportunistic government behavior leads to smaller deficits, thereby responding procyclically to expected downturns. Panel data …

cycle manifests itself in election year tax cuts and savings on administration costs. Universal suffrage, where all adult … budget cycle manifests itself in election year hikes in capital spending and a reduction in current spending. …