The use of public sector enterprises as a way to circumvent hard fiscal restraints

  1. Fernández Llera, Roberto
  2. García Valiñas, María Angeles
  3. Roibás Alonso, David
Libro:
XIX Encuentro de Economía Pública: Políticas Públicas para la salida de la crisis

Editorial: Universidad de Santiago de Compostela

ISBN: 978-84-695-1574-7

Año de publicación: 2012

Páginas: 81

Congreso: Encuentro de Economía Pública (19. 2012. Santiago de Compostela)

Tipo: Aportación congreso

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Resumen

The main objective of this paper consists of analyzing the creation and use of public sector enterprises (PSEs) as a mechanism to elude legal restrictions on public deficit. We provide a general overview of Spanish Autonomous Communities� (ACs) revenues in the context of the Budgetary Stability Act which has imposed a hard constraint on budgetary deficit from 2002 onwards. We investigate the role of PSEs as an alternative to traditional debt mechanisms given that, in line with Eurostat criteria, PSEs� debt can be taken off the public sector�s consolidated budget. Descriptive and econometric results confirm our expectations. ACs� have been using the PSEs to avoid the stringent financial rules, mainly when the legal limits are overflowed.

Fuente de los datos: Dialnet