This paper investigates whether there have been time periods between 1999 and 2019 in Hungary when government spending has been self-financing, i.e., when the government has faced a fiscal free lunch. By self-financing, it is meant that government spending, initially financed by issuing bonds,...

Fostering tax morale and reducing tax evasion is particularly challenging for the fragile democracies of Eastern Europe and post-Soviet Eurasia. This study investigates enforced and voluntary tax compliance motivations in Hungary, where democratic decline and a taxation policy shift towards...

In 2012, 22 EU countries signed the Fiscal Compact, an intergovernmental agreement aimed at backing EU fiscal rules with national arrangements. The main objective of the Compact was to strengthen compliance. Based on a survey of national independent fiscal institutions, we take a closer look at...

This paper assesses the fiscal sustainability hypothesis for 10 Eastern and Central European countries (CEEC) between 1997 and 2019. The study adopts very recent panel econometric techniques which accounts for issues of structural breaks and cross-sectional dependence in the data generating...

Fiscal consolidation has become an important policy prescription for many emerging market countries (EMCs), particularly for the highly indebted ones. Although prudent fiscal policies tend to reduce vulnerabilities, their implementation is usually postponed. This paper represents, to the best of...

This technical note presents a basic model of performance-based budgeting. It describes the characteristics of the model and explains how low-income countries should approach performance-based budgeting. The note emphasizes necessary preconditions for any move to performance-based...

Transparent public financial management at the subnational level requires institutions and processes that mirror those needed at the central government level, in order to generate better accountability and competition among different subnational governments, critical elements in ensuring good...

This paper highlights the state of Public Finances Cross-Country Fiscal Monitor. This edition of the Cross-Country Fiscal Monitor provides an update of global fiscal developments and policy strategies, based on projections from the November 2009 WEO. These projections reflect the assessment of...