INTRODUCTION
Examines the role of strong fiscal institutions and fiscal governance in ensuring fiscal sustainability. Drawing on international country experiences, it covers three main areas: medium-term budgetary frameworks, fiscal rules, and fiscal councils. The course discusses how a medium-term perspective in budgeting can improve fiscal discipline and expenditure control and surveys the preconditions necessary if the framework is to deliver the intended results.
The course also discusses the main elements of a medium-term budget and the relationship with fiscal rules. In particular, the course covers the following: The properties of different types of fiscal rules; Specific design features, such as choice of the target variable, escape clauses, automatic correction mechanisms, timing, issues of coordination between central and subnational governments; and A special focus on structural budget balance rules, The course also explores how nonpartisan agencies might help strengthen fiscal performance by raising public awareness and accountability while leaving scope for policy flexibility.