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Open alternative scenarios to public discussion and make the fiscal risks transparent. – Estimate structural (cyclically-neutral) budget expenditure, revenue and deficit targets. Local government budgeting – Involve local governments in the multi-year strategic budget process recommended above. Have local governments produce their own medium term fiscal programmes and frameworks. – Extend monthly budget monitoring to local governments. – Revise the exemptions to local borrowing caps. Replace sectoral exemptions by exemptions based on project characteristics (for example, degree of actual risk sharing by private investors, or availability of audited cost-benefit analyses).
5. Interesting discussions on the policy issues facing countries in the run-up to euroentry can be found in Begg et al. (2003) and Kontolemis (2003). 6. The full reasons for the contrasting job-search activity among the non-employed this are not clear, the difference may not only be due to genuine differences in job-search intensity between Hungary and other CEEC countries but also due to differences in the questionnaire and sampling methods in labour force surveys, even though considerable efforts are made for these to be the same across countries.
This can have not only immediate fiscal and macroeconomic impacts. For instance, lagged impacts and pre-election commitments that are politically difficult to reverse mean that post-election governments can inherit a good part of the fall-out from electoral spending. With general elections in May and local elections in the autumn, 2002 was no exception in this regard. 3 per cent. Alternative budget calculations to ESA95 accounts broadly confirm this picture. 8 per cent. 4 percentage points on 2001.