Politická ekonomie 2010, 58(4):522-541 | DOI: 10.18267/j.polek.745

Mimorozpočtové důvody růstu veřejného zadlužení

Pavel Dvořák
VŠE v Praze, Fakulta managementu v Jindřichově Hradci.

Off-Budgetary Reasons of the Growing Public Indebtedness

The interpretation of the relation between a budget deficit and a government debt in the standard economic theory is based on its unilateral causality, where the government debt comes into being due to the accumulation of budget deficits. The logic of the development of the government indebtedness is, in this approach, unambiguously determined by public finance processes monitored by Parliament in the framework of the course of fiscal years. The main objective of this paper is to stress that in reality the development of government indebtedness is significantly influenced by off-budgetary factors. The presented results endorse the hypothesis that the influence of stock-flow adjustment on the development of the debt/GDP ratio in a number of cases surpasses the influence of the budget balance. This trend significantly amplifies in the period of a financial crisis in context of the massive shift of the debt burden, occurring in the course of them.

Keywords: public debt, budget deficit, stock-flow, adjustment
JEL classification: H62, H63

Published: August 1, 2010  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Dvořák, P. (2010). Off-Budgetary Reasons of the Growing Public Indebtedness. Politická ekonomie58(4), 522-541. doi: 10.18267/j.polek.745
Download citation

References

  1. BALASSONE, F.; FRANCO, D.; ZOTERRI, S. 2007. The Reliability of EMU Fiscal Indicators: Risks and Safeguards. [Economic Working Paper No. 633]. Bank of Italy, Economic Research Department, 2007.
  2. BUTI, M.; MARTINS, J. N.; TURRINI, A. A. 2006. From Deficits to Debt and Back, Political Incentives under Numerical Fiscal Rules. [CEPR Discussion paper No. 5809], 2006. Go to original source...
  3. DE ROUGEMONT, P. 2005. Statistical Aspects of Fiscal Surveillance in the EU: Accounting for Government Deficit and Debt - the Role of Eurostat in the Excessive Deficit Procedure. Eurostat presentation, Vienna, 20. July 2005.
  4. DVOŘÁK, P. 2008. Veřejné finance, fiskální nerovnováha a finanční krize, Praha: C. H. Beck, 2008. ISBN 978-80-7400-075-1.
  5. DVOŘÁK P. 2010. Finanční krize a veřejné finance. Prezentace přednášky na webu MFČR. http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/seminare_55322.html.
  6. HAGEN, J.; WOLFF, G. B. 2004. What Do Deficits Tell Us About Debt? Empirical Evidence on Creative Accounting with Fiscal Rules in the EU [Deutsche bank, Discussion Paper, Series 1: Studies of the Economic research centre, No. 38] 2004.
  7. CHALOUPKA, L. 2009. Fiskální nerovnováha v ČR a její explicitní a implicitní souvislosti v letech 1995-2005 [Disertační práce]. Brno: Masarykova Universita, 2009.
  8. IZÁK, V. 2009. Primary Balance, Public Debt and Fiscal Variables in Postsocialist Members of the European Union. Prague Economic Papers, 2009, Vol. 18, No. 2, pp. 114-130. Go to original source...
  9. EUROPEAN CENTRAL BANK. 2007. From Government Deficit to Debt: Bridging the Gap. ECB mothly bulletin, April 2007, s. 87-93.
  10. EUROPEAN CENTRAL BANK. 2007. Government Finance Statistics Guide, January 2007.
  11. EUROPEAN CENTRAL BANK. 2008. ECB monthly bulletin, August 2008.
  12. EUROPEAN CENTRAL BANK. 2009. The Impact of Government Support to the Banking Sector on Euro Area Public Finances. ECB Monthly bulletin, July 2009, p. 63-74.
  13. EUROPEAN COMMISSION. 2008. Public finances in EMU - 2008. European Economy No. X, 2008.
  14. EUROPEAN COMMISSION. Public finances in EMU 2009, provisional version, European Economy No. 5, 2009.
  15. EUROSTAT. 2008. Euro-indicators news release No. 54, 2008.
  16. EUROSTAT. 2008. Government Finance Statistics, Sumary tables - 2/2008, Data 1996-2007, 2008 edition. ISSN 1725-9819.
  17. EUROSTAT. 2010. Government Finance Statistics, Sumary tables - 1/2010, Data 1996-2009, 2010 edition. ISSN 1725-9819. 34
  18. EUROSTAT. 2008. Stock-flow Adjustment (SFA) for the Member States, the Euro Area and the EU 27 for the period 2004-2007, as reported in the october 2008 EDP notification.
  19. EUROSTAT. 2009. Stock-flow Adjustment (SFA) for the Member states, the Euro Area and the EU 27 for the Period 2005-2008, as reported in the april 2009 EDP notification.
  20. EUROSTAT. 2010. Stock-flow Adjustment (SFA) for the Member States, the Euro Area and the EU 27 for the Period 2006-2009, as reported in the april 2010 EDP notification.
  21. FUNG, B.; GEORGIE, J.; HOHL, S.; MA, G. 2004. Public asset management companies in East Asia. A comparative study. BIS, February 2004.
  22. IMF staff position note, Fiscal implications of the global economic and financial crisis, June 9, 2009, SPN/09/13, IMF.
  23. KRÉNUZS, A.; DE ROUGEMONT, P. 2006. Stock-flow adjustment in government accounts, [Statistics in focus, Economy and finance No. 26], Eurostat, 2006.
  24. LAEVEN, L.; VALENCIA, F. 2008. Systemic banking crises: A new databaze [IMF Working Paper WP/08/224] November 2008. Go to original source...
  25. REINHART, C.; ROGOFF, K. 2009. The Aftermath of Financial Crises [Working Paper No. 14656], NBER, January 2009. Go to original source...

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.