European Financial and Accounting Journal
European Financial and Accounting Journal
European Financial and Accounting Journal
Faculty of Finance and Accounting, University of Economics, Prague

European Financial and Accounting Journal 2016/3

Short-term Fiscal Sustainability of V4 Countries


[full text (PDF)]

Marianna Sávai

The financial crisis placed budget and fiscal policy sustainability on the centre stage of researches. Recently, a number of studies have suggested that the researcher should take use of the simplest models, because they provide accurate forecasting results. This present study falls in line with this new research direction, follows a simple intertemporal budget constraint, calculates primary gap in some selected years (2004, 2009, 2014) and tests assumptions for short-term in Visegrad Group Countries. Results indicate that the fiscal stance of V4 countries was varied. In most of the examined years, the fiscal policy of the countries have seemed to be unsustainable, which pointed out the fact that the fiscal controls are need to be strengthened in short- and long-term too.

Keywords: Fiscal sustainability, Primary gap, Public debt, V4 countries

JEL Classification: E620


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