Fiscal rule
A fiscal rule is the legal limitation of the expenditure, the deficit or the indebtedness of a state authority .
Federal Fiscal Rules
Pursuant to Article 115, Paragraph 1 of the Basic Law (GG), the federal deficit must not exceed the sum of the investments . Exceptions are only permissible to avert a disturbance of the macroeconomic equilibrium ( Art. 109 (2) GG).
European fiscal rules for the budget of the European Union
The budget of the European Union must always be in balance.
European fiscal rules for the member states
According to the Stability and Growth Pact, the deficit of all state bodies of a state must not exceed 3% of the gross domestic product . The excess can be sanctioned. A larger deficit during an economic crisis is excusable, as a result of which the gross domestic product shrinks by more than 0.75% compared to the previous year.
criticism
The federal fiscal rules do not take into account the wear and tear of fixed investments, so that the deficit is not offset in full by an increase in value. The hidden government deficit through social security and future pension obligations is not taken into account.
All fiscal rules for the member states only take the business cycle into account in extreme cases : During a boom , more tax revenues are generated and fewer social benefits are granted than in the depression . A long-term balanced overall budget does not have to be achieved.
Individual evidence
- ↑ EU budget in detail - revenue in detail. ( Memento of the original from January 9, 2009 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. ec.europa.eu
