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</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)</p> Signup and view all the answers

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

    <p>True</p> Signup and view all the answers

    Expenditure rules are directly aimed at addressing revenue pressures

    <p>False</p> Signup and view all the answers

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

    <p>False</p> Signup and view all the answers

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

    <p>True</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</p> Signup and view all the answers

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