The Macroeconomic and Institutional Context of the 2012 Budget
Governor of the National Bank of Hungary, Member of the Fiscal Council
Published in: Public Finance Quarterly 2011/3 (p. 307-319.)
SUMMARY: In my paper, I look at the 2012 budget from two distinct points of view. Approaching from the perspective of the economic environment, I describe the most important lessons and relevant empirical experiences of budgetary adjustments as well as the topical macroeconomic and budgetary processes providing the foundation for next year’s budget. The second half of the paper discusses the institutional environment of the adoption of the budget. The paper presents the tasks related to the preparation and adoption of the 2012 budget, providing assistance for the legislative work of Parliament adopted by the Fiscal Council and which also follow from the new Constitution adopted in April. In addition, I shall also give an overview of the analyses provided by the Hungarian National Bank (MNB) to be used by the Fiscal Council in its relevant work.
KEYWORDS: budgetary consolidation, macroeconomic path, Fiscal Council
JOURNAL OF ECONOMIC LITERATURE (JEL) KÓD: G31, H6, E2