Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance
What is the real character of fiscal policy? Is it expansionary or restrictive? Is it pro-cyclical or does it have stabilization effects? Policymakers and economic analysts need to be able to ascertain fiscal policy effort. As the actual budget...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/339101531463533488/Bosnia-and-Herzegovina-calculation-of-cyclically-adjusted-budget-balance-and-assessment-of-fiscal-policy-stance http://hdl.handle.net/10986/30117 |
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okr-10986-301172021-05-25T09:16:04Z Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance Hlivnjak, Sandra Laco, Matija FISCAL POLICY BUSINESS CYCLES FISCAL TRENDS EXPENDITURE ELASTICITY STABILIZATION BUDGET BALANCES PUBLIC FINANCE NATIONAL BUDGET What is the real character of fiscal policy? Is it expansionary or restrictive? Is it pro-cyclical or does it have stabilization effects? Policymakers and economic analysts need to be able to ascertain fiscal policy effort. As the actual budget balances are affected both by cyclical factors and structural measures, they may not, in general, be very useful when seeking to assess the stance of the fiscal policy. To understand the true nature of fiscal policy, it is therefore fundamental to remove cyclical effects of general government budget balances. The cyclically-adjusted budget balance (CAB) indicator plays this role in the fiscal surveillance framework as a means of analyzing the fiscal situation and changes in policy that result from the intentional actions of the government. This paper, for the first time, provides detailed calculations of the cyclically-adjusted budget balances in BiH, following a commonly agreed method by the European Commission and assesses the character of the fiscal policy in BiH from 2008 to 2019. The analysis showed that in earlier years BiH had led stabilizing expansionary fiscal policy, while in more recent years the fiscal policy was mostly restrictive and procyclical 2018-08-02T19:45:18Z 2018-08-02T19:45:18Z 2018-07 Working Paper http://documents.worldbank.org/curated/en/339101531463533488/Bosnia-and-Herzegovina-calculation-of-cyclically-adjusted-budget-balance-and-assessment-of-fiscal-policy-stance http://hdl.handle.net/10986/30117 English MTI Global Practice Discussion Paper;No. 3 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Europe and Central Asia Bosnia and Herzegovina |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FISCAL POLICY BUSINESS CYCLES FISCAL TRENDS EXPENDITURE ELASTICITY STABILIZATION BUDGET BALANCES PUBLIC FINANCE NATIONAL BUDGET |
| spellingShingle |
FISCAL POLICY BUSINESS CYCLES FISCAL TRENDS EXPENDITURE ELASTICITY STABILIZATION BUDGET BALANCES PUBLIC FINANCE NATIONAL BUDGET Hlivnjak, Sandra Laco, Matija Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| geographic_facet |
Europe and Central Asia Bosnia and Herzegovina |
| relation |
MTI Global Practice Discussion Paper;No. 3 |
| description |
What is the real character of fiscal
policy? Is it expansionary or restrictive? Is it
pro-cyclical or does it have stabilization effects?
Policymakers and economic analysts need to be able to
ascertain fiscal policy effort. As the actual budget
balances are affected both by cyclical factors and
structural measures, they may not, in general, be very
useful when seeking to assess the stance of the fiscal
policy. To understand the true nature of fiscal policy, it
is therefore fundamental to remove cyclical effects of
general government budget balances. The cyclically-adjusted
budget balance (CAB) indicator plays this role in the fiscal
surveillance framework as a means of analyzing the fiscal
situation and changes in policy that result from the
intentional actions of the government. This paper, for the
first time, provides detailed calculations of the
cyclically-adjusted budget balances in BiH, following a
commonly agreed method by the European Commission and
assesses the character of the fiscal policy in BiH from 2008
to 2019. The analysis showed that in earlier years BiH had
led stabilizing expansionary fiscal policy, while in more
recent years the fiscal policy was mostly restrictive and procyclical |
| format |
Working Paper |
| author |
Hlivnjak, Sandra Laco, Matija |
| author_facet |
Hlivnjak, Sandra Laco, Matija |
| author_sort |
Hlivnjak, Sandra |
| title |
Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| title_short |
Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| title_full |
Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| title_fullStr |
Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| title_full_unstemmed |
Bosnia and Herzegovina : Calculation of Cyclically Adjusted Budget Balance and Assessment of Fiscal Policy Stance |
| title_sort |
bosnia and herzegovina : calculation of cyclically adjusted budget balance and assessment of fiscal policy stance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/339101531463533488/Bosnia-and-Herzegovina-calculation-of-cyclically-adjusted-budget-balance-and-assessment-of-fiscal-policy-stance http://hdl.handle.net/10986/30117 |
| _version_ |
1764471165224484864 |