Expenditure Rules for Sound Fiscal Policy
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Questions and Answers

What is the main focus of expenditure rules?

  • Enhancing fiscal discipline
  • Addressing excessive deficits (correct)
  • Promoting transparency in fiscal policies
  • Controlling public finances

Which feature makes expenditure rules easy to monitor?

  • Complex formulation
  • Lack of legal appropriations
  • Minimal government involvement
  • Transparent nature (correct)

What contributes to the enforceability of expenditure rules?

  • Debt control measures
  • Political commitments
  • Budget balance regulations
  • Legally binding appropriations (correct)

What can expenditure rules lead to in terms of spending?

<p>Stricter prioritization and greater efficiency (A)</p> Signup and view all the answers

What is compliance with expenditure rules generally higher than?

<p>Other types of rules (on the budget balance or debt) (D)</p> Signup and view all the answers

Expenditure rules are receiving increasing attention in the policy debate after the global financial crisis

<p>True (A)</p> Signup and view all the answers

Expenditure rules are directly aimed at addressing revenue pressures

<p>False (B)</p> Signup and view all the answers

Compliance rates with expenditure rules are generally lower than with other types of rules

<p>False (B)</p> Signup and view all the answers

Expenditure rules can lead to stricter prioritization and greater efficiency in spending

<p>True (A)</p> Signup and view all the answers

Compliance with expenditure rules is higher if the expenditure target is not directly under the control of the government

<p>False (B)</p> Signup and view all the answers

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