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Choosing the Nation's Fiscal Future (2010) / Chapter Skim
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Appendix G: International Experience with Long-Term Budgeting
Pages 321-328

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From page 321...
... This appendix focuses on the experiences of 12 OECD and other industrialized countries in using fiscal projections: Australia, Canada, Denmark, Germany, Korea, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the United Kingdom, and the United States. For the most part, 
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From page 322...
... Hard triggers usually involve automatic cuts to program spending, changes in eligibility criteria or benefit formulas of mandatory spending, or tax increases. Soft triggers often involve result in further proposals to change the path of fiscal policy but are not guaranteed to produce changes (Government Accountability Office, 2008)
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From page 323...
... a 5 years Germany EC Stability Report on the Sustainability Federal Finance 2005 / General Until 2050 Every Program of Public Finance Administration 2008 government (fixed) a 4 years Korea NA Vision 2030 Ministry of Planning 2006 / Central 25 years Ad hoc and Budgetb 2006 government Netherlands EC Stability Aging and the Sustainability Central Planning 2000 / General Until 2100c Ad hoc Program of Dutch Public Finances Bureau 2006 government New Public Finance Act New Zealand's Long-term New Zealand 1993 / Central 40 years Every Zealand (1989 as amended)
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From page 324...
... cNetherlands: time horizon spans until 2100 though report also separately discusses policies until 2040. dNew Zealand: legal obligations were first required under the Fiscal Responsibility Act, 1994, and subsequently integrated into the Public Finance Act, 1989, as amended in 2004.
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From page 325...
... • Although many factors, such as the fiscal consequences of popula tion aging, global climate change, and contingent liabilities pose risks to fiscal sustainability, most projections focus solely on popu lation aging. • A combination of projected fiscal aggregates and synthetic indica tors are the most common measures of fiscal sustainability; gen erational accounting is prepared only in a couple of the countries surveyed.
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From page 326...
... In the United States, the Social Security Act was amended in 1968 to provide for the appointment of an advisory council every 4 years beginning in 1969. The council was to review the status of the Social Security and Medicare trust funds as well as the scope of coverage and adequacy of benefits under the Social Se curity and Medicare programs.
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From page 327...
... In industrialized countries, an average generation is 30-40 years. The time period of more than 10 years has been selected here, noting that a number of countries prepare medium-term fiscal frameworks spanning up to 8 years (e.g., Denmark and Sweden)
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Key Terms

  • actuarial projections
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  • fiscal futures

  • infinite time
  • government accountability
  • budget practices
  • european commission
  • hoc basis

  • fiscal sustainability
  • futures reports
  • countries surveyed
  • accountability office
  • public finances

  • pension funds
  • triggers usually
  • fiscal future
  • involve result
  • fiscal policy

  • benefit formulas
  • government netherlands
  • monetary fund
  • dutch public
  • fiscal responsibility

  • hard triggers
  • six countries
  • procedures survey
  • budget reforms
  • produce changes


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