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Budgetary Constraints

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Global Encyclopedia of Public Administration, Public Policy, and Governance

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Synonyms

Arrest; Captivity; Check; Circumscription; Clampdown; Confinement; Control; Cramp; Curb; Curtailment; Damper; Detention; Deterrent; Hampering; Handicap; Hindrance; Impediment; Limit; Limitation; Obstruction; Rein; Restraint; Restriction

Definition of Budgetary Constraints

Most governments set some type of restriction on their public finances figures in an attempt to prevent the recurrence of the wave of defaults and excessive deficits and borrowing. The introduction of these constraints could be explained by the theory of fiscal illusion. Fiscal illusion might take five distinct forms: the complexity of the tax structure, renter illusion with respect to property taxation, income elasticity of the tax structure, debt illusion, and flypaper effect. In the case of debt illusion, which involves the choice between debt and tax finance, it is assumed that individuals are more likely to perceive the costs of public programs if they pay for them through current taxation than if tax...

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References

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Author information

Authors and Affiliations

  1. Department of Accounting and Finance, Faculty of Economics and Business, University of Murcia, 30100, Murcia, Spain

    María-Dolores Guillamón

Authors
  1. María-Dolores Guillamón
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Correspondence to María-Dolores Guillamón .

Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, Florida, USA

    Ali Farazmand

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© 2016 Springer International Publishing Switzerland

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Guillamón, MD. (2016). Budgetary Constraints. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2265-1

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  • DOI: https://doi.org/10.1007/978-3-319-31816-5_2265-1

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  • Publisher Name: Springer, Cham

  • Online ISBN: 978-3-319-31816-5

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