How To Get Better at Budgets

"As the structural roots of budget deficits have become more widely understood, a growing number of countries have adopted fiscal rules to reshape democratic governance. The Columbia University macroeconomist Pierre Yared found that in 1990, only seven countries had such restrictions in place, but by 2015, 92 countries did. Governments across the world have been mandating deficit, spending, and revenue limits to constrain fiscal policy and curtail further increases in government debt.

These fiscal rules are broadly effective. Comprehensive data covering many years show that countries with such rules have annual budget deficits that are smaller by an average of 0.5 percent of gross domestic product (GDP) when compared to countries without such rules."