By J. Wehner
The legislative 'power of the handbag' is a crucial constitutional precept throughout modern democracies. but, nationwide legislatures fluctuate of their method of economic keep watch over. what's the function of legislatures within the finances technique? Why does this position range throughout democratic nations? Are strong assemblies a danger to the prudent administration of public funds? This unheard of survey of legislative budgeting tackles those questions utilizing quantitative information and case reports. The research finds a amazing version within the budgetary function of nationwide legislatures throughout modern democracies, that's prompted by means of colonial background in addition to present political dynamics. It additionally reveals constant facts that strong legislatures are linked to better public spending than people with restricted authority. in accordance with in-depth money owed of basic reforms to the finances approach in Sweden and South Africa, Legislatures and the funds approach explores how the stress among legislative authority and monetary self-discipline could be reconciled.
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Extra info for Legislatures and the Budget Process: The Myth of Fiscal Control
Sample text
In practice, legislatures always have more members than there are spending ministers in the cabinet, and they also typically contain more parties than the executive. In short, even if the ideal budget of the legislature is less profligate than the executive’s in some years, this is unlikely to be the case all of the time. Amendment limits should have a substantive long-run effect on fiscal policy. In practice, there may be other considerations that limit the extent to which the legislature can amend the budget proposal.
The analysis in this chapter will show that this type of limit may not always impose a hard budget constraint. The term ‘total spending constraint’ describes rules that allow legislatures to make amendments as long as these do not lead to 22 Legislatures and the Budget Process an increase in total expenditure, so that an increase of any item has to be compensated by commensurate reductions elsewhere in the appropriations, but not with revenue increases. ’ In effect, the government can veto any amendment proposal that would increase expenditures (or decrease revenues).
Some constitutions limit the severity of the consequences of non-approval by allowing reversion to the previously approved budget. For instance, when the annual budget has not yet been enacted at the beginning of the fiscal year, Germany’s Basic Law allows the federal government to ‘make all expenditures that are necessary: (a) to maintain institutions established by a law and to carry out measures authorised by a law; (b) to meet the legal obligations of the Federation; (c) to continue construction projects, procurements and the provision of other benefits or services, or to continue to make grants for these purposes, to the extent that amounts have already been appropriated in the budget Institutional Foundations of Legislative Control 29 of a previous year’ (article 111(1)).