MULTI-YEAR BUDGETING – TOWARDS THE ENHANCEMENT OF FISCAL DISCIPLINE

Abstract

The identification of the reasons for the existing fiscal imbalance shows that it is necessary to introduce the institutional solutions of the budgetary process. This paper aims to verify the hypothesis that the application of multi-year budgeting is a factor which increases fiscal discipline and promotes efficiency and transparency of public finance. The research presents a comparative analysis of the quality of macroeconomic forecasts for EU countries including parameters such as the real GDP growth rate, general government sector deficit to GDP ratio, public debt to GDP ratio. Information contained in the EU Stability and Convergence Programmes and in the International Budget Practices and Procedures Database published by the OECD constituted the source of data for the research

Keywords

• government budget, public budgeting, fiscal discipline

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