What are budgeting's purposes? [E-Book]: Comments on OECD's principles of good budgetary governance / Joseph White
White, Joseph.
Paris : OECD Publishing, 2015
18 p.
Finance and Investment
Full Text
OECD’s Recommendation of the Council on Budgetary Governance makes a substantial contribution to discussion of good budgetary practice by synthesising much common understanding while updating it to recognise some lessons from the experience of the Great Recession. Yet its implicit understanding of the purposes of budget processes has weaknesses both as policy and political analysis. The policy understanding overemphasises the importance of budget totals relative to budget details. The political understanding is as top-down as the policy view. Although budgets might be seen as contracts between citizens and the state, in a representative system they are better seen as treaties among citizens negotiated through politics. The Recommendation barely recognizes the existence of and challenges from political conflict. JEL classification: H00, H60, H61 Keywords: Balance, fiscal policy, information, representation, top-down, United States