UDC 336.225.1
Biblid: 1451-3188, 13 (2014)
Vol. 14, No 49-50, pp. 258-272

Оriginal article
Received: 01 Jan 1970
Accepted: 01 Jan 1970


Mirković Predrag (Правни факултет за привреду и правосуђе у Новом Саду),
Konjikušić Marko (“Преми траде” ДОО. Нови Сад), markozr1979@yahoo.com

A Fiscal Council could be an institutional response to the fiscal crisis. In the outgoing fight for the reduction of the budget deficit, spending resources control and achieving fiscal discipline, governments have used fiscal rules as a mechanism for the implementation of appropriate fiscal policy. However, in the last few years it has been recognized that the problems that exist in the area of fiscal policy can be solved only by fiscal rules, because it is proved that the same rules are not well adapted to the needs of the system or the practice has shown that the rules are very often violated. The answer to the growing government debt, indiscipline in fiscal policy, increasing budget deficit the experts have found in creating a fiscal institution to deal with these problems. The idea is to apply the problems that existed in the area of monetary policy and the solutions in this segment in the fiscal policy. The institutional solution is manifested in the establishment of a Fiscal Council as agency that could in the future become an independent fiscal institution, counterpart to the central bank in the monetary sphere. The potential role, objectives and targets of the Fiscal Council are being pointed to in the paper. Nevertheless, the subject of the analysis is achieving work independence of this council as well as policy implications that are linked with the process. In writing this paper mainly foreign data source were used because this subject is not much discussed in our scientific community.

Keywords: fiscal policy, Fiscal Council, budget deficit, financial crisis